When Albert Einstein was asked by a reporter, what is the most powerful force in the universe? He replied,"Compound Interest".

Compound interest is the reason that virtually everyone participating in the InvestingForStudents.org Program for a long enough period of time will become a multimillionaire DRIP investor. I don't care if he/she is poorly educated, uneducated, works in a meager paying job, is a member of a minority, has a criminal record, or has any other handicap, compound interest, time, and practicing the InvestingForStudents.org Program will overcome all of these handicaps. The one thing that can derail the express train of compound interest in your quest for great wealth acquisition is violating the fifth part of the InvestingForStudents.org Program WEALTH ACQUISITION FORMULA, "AVOID STUPID THINGS".

Understanding Compound Interest is simple. There are only 2 things that you need to know:

1. The LAW OF COMPOUND INTEREST which states the doubling time of money equals 72 over the interest rate or:

2. The LAW OF GEOMETRIC PROGRESSION or the LAW OF DOUBLING. Below please find a DOUBLING TABLE which defines this LAW.

LAW OF GEOMETRIC PROGRESSION (LAW OF DOUBLING)

Examples of the LAW OF COMPOUND INTEREST:

INTEREST RATE

Thus money invested at 3% doubles in 24 years because 72/3=24. Money invested at 9% doubles in 8 years because 72/9=8. Money invested at 18% doubles in 4 years because 72/18=4.

Below is a doubling table for $1. Thus the first doubling of 1 is 2. The second doubling is 4. The third doubling is 8. The forth doubling is 16. The fifth doubling is 32. This is all that you need to know about compound interest. It is also nice to have compound interest tables printed out for you. This is done in COMPOUND INTEREST TIME PROGRESSION TABLES found in your TABLE OF CONTENTS.

LAW OF GEOMETRIC PROGRESSION (LAW OF DOUBLING)

There are inexpensive hand held calculators / computers that can calculate compound interest instantaneously. Many of these can be purchased online at our Bargain/Free Sample Shopping Cart.

The critical thing in acquiring great wealth is to have as safe, but as high a rate of compound interest work on as large a base of money, getting it to double as often as possible. Thus 10 doublings will convert $1 into $1,024. If that $1 is invested at 3% and will double every 24 years, it will take 240 years to get 10 doublings. If that $1 is invested at 9% and doubles in 8 years, it will take 80 years to get 10 doublings. If that $1 is invested at 18% it will double in 4 years and will take 40 years to get 10 doublings. That is a number that I can live with. As a matter of fact that $1 invested at 18% for 80 years will grow to 20 doublings or be converted to $1,048,576.

10 doublings applied to a base of $1 dollar will convert that $1 into $1,024. Not a bad number, however just over a thousand. Those same 10 doublings applied to a base of $1000 will become $1,024,000. Now that's serious money. At 18% doubling every 4 years, that's 40 years, a livable number.

An important point to note is the chances of getting a long term 18% on your investments are slim because the returns of 18% are so very high. However a 10%-14% return over a long period of time, 50 to 65+ years can grow into awsome returns. Just look at the COMPOUND INTEREST TIME PROGRESSION TABLES found in your TABLE OF CONTENTS.

Needless to say if you child age 5 starts the InvestingForStudents.org Program and invests at 18% over 80 years, until age 85, that first dollar will have grown into $1,024,000. Now the dollar he/she invested on the second day will have done the same thing. The bottom line is that his/her first years saving and investing will have grown into almost half a billion dollars. Not bad for $1+ a day into his/her coffee can.

Bottom line- Compound interest is powerful stuff. Now it is time to re-think that 21%+ you are paying for your credit cards.