In the graph, notice the difference that just 5 additional years can make on future value of your investment!
In simple terms, compound interest is the interest earned on interest. Compounding is a compelling concept. It is because the interest of your invested money is also earning interest.
The power of long-term compounding is at the heart of why some investors become very wealthy over time.
Albert Einstein is reputed to have said, 'Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it.'