Compound interest means that after each interest period, the interest generated will be added to the principal to calculate the interest of the next period. In this way, in each interest-bearing period, the interest of the previous interest-bearing period will become the interest-bearing principal, that is, interest will be generated by interest, which is also commonly known as "rolling interest"-compound interest is the eighth wonder in the world, and compound interest is one of the most powerful forces in the universe-Einstein.
For example, to raise a pension of 3 million yuan after 30 years, assuming the average annual rate of return is 3%, then the principal that must be invested now is 3,000,000×1(1+3%) 30.
And even if your starting point is very low, as long as you have a clear life plan and long-term patience, compound interest will lead you to real success.