Earning money on money
You invest 1,000€. Grows 7% yearly.
Year 1: 1,000 + 70 = 1,070€ Year 2: 1,070 + 74.90 = 1,144.90€ (earned on the new money!) Year 3: 1,144.90 + 80.14 = 1,225.04€
It's exponential. Grows faster each year.
After 10 years
1,000€ becomes 1,967€. Almost doubled.
After 30 years
1,000€ becomes 7,612€. Almost 8 times.
What matters
The more time, the bigger. Start now.
100€ at 20 > 10,000€ at 40.
Time > amount.