Most people don’t recognize the implications of compound growth for financial decisions. Albert Einstein once described compound interest as the “greatest mathematical discovery of all time.” It is often said that the Native American who sold Manhattan Island in 1626 for $24 was rooked by the white man. In fact, he may have been an extremely sharp salesman. Had he put his $24 away at 6 percent interest, compounded semiannually, it would now be worth more than $100 billion, and with it his descendants could buy back much of the now improved land. Such is the magic of compound growth!
