The fascinating part for me has always been the power of compounding : 1.032 ^ 300 = 12703, while 1.030 ^ 300 = 7098 ! i.e., a difference of 0.2% per annum make

The fascinating part for me has always been the power of compounding : 1.032 ^ 300 = 12703, while 1.030 ^ 300 = 7098 ! i.e., a difference of 0.2% per annum makes a 5600-times difference in final wealth. Related : in the finance industry, there's a term called basis points (written bps, pronounced "bips"). 1 bps = 1/100th of a percentage. So that 0.20% is actually 20 bps, a royal magnitude in this new perspective of compounding :-)