How can Compound Interest Help me Retire???

What is Compound Interest?

"Compound interest (or compounding interest) is interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan. Thought to have originated in 17th-century Italy, compound interest can be thought of as “interest on interest,” and will make a sum grow at a faster rate than simple interest, which is calculated only on the principal amount. The rate at which compound interest accrues depends on the frequency of compounding; the higher the number of compounding periods, the greater the compound interest. Thus, the amount of compound interest accrued on $100 compounded at 10% annually will be lower than that on $100 compounded at 5% semi-annually over the same time period." Investopedia.com

With Compound Interest, you work out the interest for the first period, add it to the total, and then calculate the interest for the next period, and so on ..., like this:

It grows faster and faster like this:

Here are the calculations for 5 Years at 10%:

Remember to invest early and young Steemit Community. Let the power of compound interest grow a large nest egg for retirement. The best way to benefit from compounding interest is to start investing NOW :) Thank you for reading.