Can you tell me the story of Benjamin Franklin and compound interest?

Certainly! The story of Benjamin Franklin and compound interest is a classic example of the power of this financial concept. Franklin, one of the Founding Fathers of the United States, was also known for his wit, wisdom, and keen interest in financial matters.

In his will, Franklin left 1,000 pounds (a significant sum at the time) each to the cities of Boston and Philadelphia. However, there was a catch. The funds were to be invested for 200 years, and during that time, portions of the funds could only be accessed at specific intervals. Franklin anticipated that the power of compound interest would significantly increase the value of these funds over time.

His prediction proved correct. By the end of the 200-year term, the funds had grown exponentially, far beyond the initial amounts. This testament to the power of compound interest showed how money could grow over time when repeatedly reinvested. Franklin's experiment beautifully illustrated his belief in long-term planning and investment for the greater good. It remains an enduring lesson in finance and a testament to his forward-thinking approach.