Albert Einstein has been attributed with saying that "compound interest is the eighth wonder of the world." 1. Warren Buffett once said that "Life is like a snowball. The important thing is finding wet snow and a really long hill." 2. In part, this is a reference to his ability to compound and amass wealth over time.

How does time work in your favor when it comes to investing and compounding?

If you set aside $10,000 each year for 30 years and it grew at an interest rate of 10%, how much would you have at the end of the 30 years?

How much would you have at the end of 40 years? (Hint: solve for Future Value).

1. http://www.quotesonfinance.com/quote/79/Albert-Einstein-Compound-interest

2. http://www.marketwatch.com/story/warren-buffetts-snowball-retirement-advice-2015-11-16

Answer rating: 100% (QA)

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