You double a penny every day for 30 days, you will have over $5million dollars by the end of the month. This is the power of compounding interest.
Here's a table showing how much money you would have each day:
Day Amount
1 $0.01
2 $0.02
3 $0.04
4 $0.08
5 $0.16
6 $0.32
7 $0.64
8 $1.28
9 $2.56
10 $5.12
11 $10.24
12 $20.48
13 $40.96
14 $81.92
15 $163.84
16 $327.68
17 $655.36
18 $1,310.72
19 $2,621.44
20 $5,242.88
21 $10,485.76
22 $20,971.52
23 $41,943.04
24 $83,886.08
25 $167,772.16
26 $335,544.32
27 $671,088.64
28 $1,342,177.28
29 $2,684,354.56
30 $5,368,709.12
As you can see, the amount of money you have grows exponentially each day. This is because you are earning interest on your interest.
The power of compounding interest is why it is so important to start saving and investing early. Even if you can only save a small amount of money each month, it will add up over time.
