Monday, February 25, 2008

Random Fact of Compound Interest

This is quite an extreme example but its something to think about...If Christopher Columbus had placed a single penny in a 6 percent interest bearing account and told someone to remove the interest every year, the value of the interest earned by 2005 would be about 31 cents. But if he had placed the same penny into the same interest-bearing account but left the earned interest to compound - earning interest upon the interest - the balance for 513 years would be $95,919,936,112.

3 comments:

Anonymous said...

do you know anything about the stock market?

Gregg said...

I do, what do you want to know about it?

Anonymous said...

is etrade a good service for stock trading?