Here is how Compound Interest accumulates Fast!!!

The most common misconception people make when calculating Compound Interest is the forget to add the new principle after the first month of interest is added to the original principle. for example after the first month the new principle is $476.33. Then you multiply the new principle by 10% which comes out to $523.93. Continue to do this until you get to 48 months which is 4 years. See the attached picture. The reason it is sooo important is that you can build a small account really quick. Any questions?