Power Of Compound Interest
1.) what is Compound Interest/Working of compound Interest :-
In simple terms the compound interest is the interest on interest that means the interest you earned from your investment is reinvested and you also get return/interest on it.
the cycle of reinvesting repeats till we withdraw our investment. it is also known as the 8th wonder of the world and it is said that who understand compound interest they earn it & who don't they pays it.
[ Growth Of Money In Compounding Interest ]
2.) Formula OF Calculation :-
A = P (1 + r/n) (nt)
Where P=Principal amount
r= Annual interest rate
n= Number of Compound Periods
t= Time factor
3.) Power Of Compound interest :-
The power of compounding interest works on the long term investments, and not for the short term investor, the more time you give the more return you will get.The people with patience can see the magic of the compound interest.
It is like an magic your money get multiplies after the specified time frame and you get the best return on your investment, your small investment can make you millionaire if you start investing early and give enough time to your investment to grow and see the magic of compound interest.
Do investment for minimum 20 to 25 years to get the best returns on your hard earned money & get the benefit of the power of compounding.
4.)Rule No 72 :-
If you want to calculate the time required to double your money at some specified rate of interest then rule no 72 can be useful to you.
For Example :- 72/12=6 It means that your money will be double in 6 years by getting growth of interest rate 12% Annually.
5.)To become financially independent start investing early and get benefit of power of compound interest & and you don't require large amount to start investment. you can start Lump Sum Investment with minimum 5000 to 10000 Rs and you can start SIP by 500 to 1000 Rs.
=> So Now you understand the power of compounding interest so now you are able to earn an huge amount but there is only one way to get the benefit of the compound interest that just stay invested for the long term .....
In simple terms the compound interest is the interest on interest that means the interest you earned from your investment is reinvested and you also get return/interest on it.
the cycle of reinvesting repeats till we withdraw our investment. it is also known as the 8th wonder of the world and it is said that who understand compound interest they earn it & who don't they pays it.
2.) Formula OF Calculation :-
A = P (1 + r/n) (nt)
Where P=Principal amount
r= Annual interest rate
n= Number of Compound Periods
t= Time factor
3.) Power Of Compound interest :-
The power of compounding interest works on the long term investments, and not for the short term investor, the more time you give the more return you will get.The people with patience can see the magic of the compound interest.
It is like an magic your money get multiplies after the specified time frame and you get the best return on your investment, your small investment can make you millionaire if you start investing early and give enough time to your investment to grow and see the magic of compound interest.
Do investment for minimum 20 to 25 years to get the best returns on your hard earned money & get the benefit of the power of compounding.
4.)Rule No 72 :-
If you want to calculate the time required to double your money at some specified rate of interest then rule no 72 can be useful to you.
For Example :- 72/12=6 It means that your money will be double in 6 years by getting growth of interest rate 12% Annually.
5.)To become financially independent start investing early and get benefit of power of compound interest & and you don't require large amount to start investment. you can start Lump Sum Investment with minimum 5000 to 10000 Rs and you can start SIP by 500 to 1000 Rs.
=> So Now you understand the power of compounding interest so now you are able to earn an huge amount but there is only one way to get the benefit of the compound interest that just stay invested for the long term .....
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