If you want to understand the difference between ‘simple’ interest and ‘compounding’ interest – and, if you want to understand why it makes a difference as to how often you compound that interest – then watch this video (until the presenter starts writing with a blue pen … from that point on, only watch if you are a mathematician) …
7million7years
How to make 7 million in 7 years …
weee haaa . can I loan anyone any money here? hahaha
I love the topic of compound interest- because it is so powerful, but so misunderstood. Here is my post that explains it graphically: http://ponderingmoney.com/2009/10/12/you-need-to-understand-compound-interest/
I even used rates you can get without breaking the law :-).
-Rick
@ Rick – In that case you won’t like my follow up post (stay tuned!) 😉
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