Chapter 1
The magic of the compound snowball
Chapter 2
Ancient clay tablets and old money secrets
Chapter 3
The modern hustle and micro-investing
Chapter 4
The brain game and psychological traps
Ch 1 · The magic of the compound snowball
nic Simple interest pays a flat $10 yearly on $100, while compound interest reinvests your 10% earnings to generate $11 in year two.
Quiz
If you invest $1,000 at a 10% compound annual interest rate, how much total interest do you earn after 3 years?
Quiz
If you invest $1,000 at a 10% simple annual interest rate, how much total interest do you earn after 3 years?
Quiz
Which Italian Renaissance mathematician and friar is widely credited with publishing the first known written explanation of the Rule of 72 in 1494?
Quiz
Using the Rule of 72, how many years will it take for an investment to double at an 8% annual return rate?
Fun Fact
Doubling grains: If you placed one grain of rice on a chessboard's first square and doubled it on each subsequent square, the final total would pile higher than Mount Everest.
Quiz
What mathematical term describes a sequence where each term is found by multiplying the previous term by a constant?
Glossary
compound interest (noun)
Interest calculated on both the initial principal and the accumulated interest from previous periods. In 1790, Benjamin Franklin demonstrated this phenomenon by leaving a two-century trust for Boston and Philadelphia.
Interest calculated on both the initial principal and the accumulated interest from previous periods. In 1790, Benjamin Franklin demonstrated this phenomenon by leaving a two-century trust for Boston and Philadelphia.
Quiz
In financial mathematics, what is the term used to describe the loss of potential gain from other alternatives when one alternative is chosen?
Quiz
If an investor starts saving at age 20 instead of age 30, how many additional years of compounding do they gain by retirement at age 60?