Based on a 10% return yearly with a starting capital of $100,000.
From the pictures above, you can clearly see that it is a different scenario from my inflation post. This is the power of investing. When you invest, you can reinvest and compound your money.
First of all, what is “compound interest” ?
Interest paid on both the principal and on accrued interest.
After you’ve earned your 10% interest at the end of each year, you decide to reinvest your earnings. This is what can happen if you do so every year.