Compounding explained without the mysticism

Compounding is just interest earning interest: A = P x (1 + r)^n. The exponent is where the drama lives.

At 12% assumed annual growth, money roughly doubles every six years. Most of the visible growth appears in the final third of a long horizon, which is precisely when impatience peaks.

Interruptions cost more than low returns. Withdrawing and restarting resets the exponent, which is why a boring uninterrupted plan often beats a clever interrupted one.

Rates used here are illustrative assumptions for teaching the maths, not expected returns.