Magic of Compounding: In
1626, Peter Minuit of Netherlands bought the island of Manhattan from
the Lenape people for a basket of clothes, beads and other stuff that
would have been worth just $24 then. Now, you might think that the
native Americans were robbed. Actually, if they were able to invest that
$24 in a 8% bond, that account would be worth $26 trillion in 2012 -
enough to buy entire America. That is the magic of compounding. Your
money keeps multiplying the longer you save. If compound interest is the
only thing you remember from your highschool math, you will survive.
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