by Simon Black
Albert Einstein is rumored to have said that “Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.”
These days interest rates are near zero. The average savings account currently pays .09% interest per year, according to the FDIC.
So over the course of a decade, saving $100 with compound interest would give you a grand total of $109.37.
But at the same time, the opposite force is working against us. Inflation currently stands around 2.5%. And that compounds too.