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Compound Interest

What is Compound Interest?

Compound interest is the wealth-creating effect that happens when interest from your investments earns interest on itself. For example, $1 will be worth $15 after 40 years, assuming a 7% per year market return, which is a common estimate for stocks over the long term.

Compound interest is a powerful force that can benefit investors greatly. By investing as much money as you can as early as possible, you can take maximize your earning potential.

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