The Power of Compound Interest

# TikTok Video Script **Compound interest makes money grow exponentially faster than you think.**

Your twin starts saving $100 a month at 20, earning 4% interest. By 65,

they have $151,550. But you wait until 50, investing $5,000 upfront plus $500

monthly with the same return. By 65, you only have $132,147, even though you

put in almost double the money. :max_bytes(150000):strip_icc():format(webp)/COMPOUNDINTERESTFINALJPEGcopy-f248781269194135aa6044e088de7af9.jpg) Here's what's happening. You earn interest

on your original money, then that interest earns interest. It's like a snowball

rolling downhill, getting bigger and faster. :max_bytes(150000):strip_icc():format(webp)/compoundinterest_final-5c67da5662ba458f8d9d229ab4ca4292.png) A 3-year loan of

$10,000 at 5% annual compound interest costs you $1,576 in interest, not just simple