Albert Einstein allegedly called compound interest the 'eighth wonder of the world.' It is a force of nature, and its language is algebra.

The Formula: A = P(1 + r/n)^(nt). It looks intimidating, but it's a simple story.

'A' is the final amount. 'P' is the principal you start with.

'r' is the annual interest rate. 'n' is how many times it compounds per year. 't' is the number of years.

The key is the exponent. This makes it an *exponential function*, not a linear one.

This means your money doesn't just grow; the *growth itself grows*.

That's why a small amount invested early can become a massive amount later. The curve gets steeper and steeper.

Algebra allows you to solve for any part of this. You can calculate how much you need to invest now ('P') to reach a future goal ('A').

You can calculate how long it will take ('t') for your money to double.

Understanding this one algebraic formula is the absolute key to unlocking the power of long-term investing and building wealth.