What is compound interest?

Compound interest is the process of earning interest on the initial principal and also on the accumulated interest that has been earned.
The main idea behind compound interest is that it allows for the exponential growth of the original sum. This means that a small amount of money can grow into a large amount if given enough time to compound.

why is compound interest so powerful?

Compound interest is the most powerful force in the universe because it operates on exponential growth rather than a linear increase. Compound interest occurs when interest on an investment is added to the principal sum so that both generate more interest.