Tell me why compound interest is such a big deal. It doesn't

scary doge no sit

>>1945324
You'll understand once you learn to use exponents in school.

>>1945324
>Doesn't know math
>Doesn't know Excel

Figure it out yourself, brainlet.

>>1945324
it is very much a meme

examples always use some bullshit 7-10% return

>>1945324
Because eventually you earn more from the interest your deposits have garnered than the interest itself and the shit starts to hit the fan

Only problem is it takes about 40/50 years to start doing under relatively steady risk-free conditions by which time you're a decrepit old fuck who can't spend any of your meagre fortune anyway

File: compoundinterest.png (95KB, 1154x792px) Image search: [Google]

95KB, 1154x792px

>>1945671
>it is very much a meme

It's both true and important.

If you somehow missed taking math in school, here's a picture.

And it works the same, just slower, at lower rates of return.

>>1945809
>60 have 65k
>65 have 90k
You are literally using 7-10% returns.

>>1945848
>Search Results
According to historical records, the average annual return for the S&P 500 since its inception in 1928 through 2014 is approximately 10%.

>>1945859
I fucked up the greentext here but you get the point.

>>1945848
>You are literally using 7-10% returns.

And it works the same, just slower, at lower rates of return.