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Simple compound interest is a concept in finance that refers to the growth of an investment or loan over time. It is calculated by taking the principal amount of the investment, adding the interest earned in previous periods, and then calculating the new interest based on the total amount. This means that the longer an investment is held, the faster it will grow through compound interest.
One of the most famous proponents of the power of compound interest is investor Warren Buffett. Buffett has credited compound interest as one of the key factors behind his success, stating that the ability of money to grow exponentially over time is a "miracle" that can help anyone achieve financial success.