This description explains the importance of investing early in order to benefit from compound interest. Compound interest is the interest earned on the principal amount of an investment, as well as the interest earned on the interest already earned. By investing early, you can take advantage of this powerful tool and watch your
In finance and economics, interest is payment from a debtor or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum, at a particular rate. It is distinct from a fee which the borrower may pay to the lender or some third party. It is also distinct from dividend which is paid by a company to its shareholders (owners) from its profit or reserve, but not at a particular rate decided beforehand, rather on a pro rata basis as a share in the reward gained by risk taking entrepreneurs when the revenue earned exceeds the total costs.