8th Wonder of the world, the greatest inventionBy Randell Tiongson on January 16th, 2011
Compounding interest is a truly an amazing investment concept. The appreciation of one’s investment grows at an accelerated rate because of the compounding of interest.
The concept of compounding interest has been dubbed as the “8th Wonder of the World” and it has largely been attributed to the scientific genius, Albert Einstein. I have heard many speakers and read many writers who would quote Albert Einstein as saying that compounding interest is the ‘greatest invention in human history’.
The accuracy of such a claim is actually undetermined and in all likelihood, may even be improbable. In an entry in Snopes, it mentioned that there was no mention of such a claim being made during the scientist’s life time and that the earliest mention of such was in a New York Times blurb in 1983.
In addition, I would argue that compounding interest being ‘invented’ may actually be an error in reference as compounding of interest is more of a mathematical derivative. But I am not a scientist nor a mathematician so I will leave it be.
Further, the crediting of such a claim does not fall exclusive to Albert Einstein only as such a claim has been conferred to other men in history such as Baron Von Rothschild, Bernard Baruch and even Benjamin Franklin.
Regardless who the credit goes to, the concept of compounding interest is an amazing one and everyone should not only take note of it, we should take advantage of it. Your financial future will depend on how well you take advantage of such a financial concept.
I just wish speakers and writers would stop making unfounded claims on the concept of compounding interest because the concept itself need not be sensationalized as it is already amazing in itself… and that speakers and writers should do their homework first – this writer included!