Compound interest allows money to grow exponentially by earning interest on both the initial principal and accumulated interest. A $1,000 deposit at a 4% annual rate grows to $1,040 in one year ...

The Power of Compound Interest: How to Turn Small Investments Into Big Wealth The key is understanding how it works and how to maximize its potential to build financial security.

Investment word of the day: Compounding involves earning interest on initial principal and prior interest, enhancing investment growth over time.