Albert Einstein once said, “Compound Interest is the eighth wonder of the world. He who understands it, earns it… he who doesn’t… pays it.”
Comparatively speaking one looks at Simple Interest, and when you do the math of a 10% return annually over 25 years on R10o,000; the numbers revealed are scary.
Simple interest earns you around R250K whilst compound interest generates a return in excess of R1m.
The lesson, just make sure you’re earning compound interest and not paying it. No wonder it should be taught at all age groups.
