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Compound Interest: The Power of Exponential Growth

By Imperialpedia Staff

Compound interest is the addition of interest to the principal sum of a loan or deposit, where interest earned also earns interest. This creates exponential growth and is fundamental to long-term wealth building.

The Rule of 72

The Rule of 72 is a quick way to estimate how long it takes for an investment to double. Simply divide 72 by the annual interest rate to get the approximate number of years for doubling.

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