Compound Interest is something to take advantage of. When you deposit money in an account, hedge funds or mutual funds your initial deposit (principal) earns interest. You earn the most interest if you invest in the stock market and the least with banks. Anyways, your principal earns interest and then the principal+interest earns more interest and so on and so forth.
Albert Einstein admires the rule of 72. The point of the rule is to find out how long it will take you to double your principal solely with the amount of interest you earn .The rule says that to find the number of years required to double your money you just divide the interest rate into 72. For example, if you want to know how long it will take to double your money at eight percent interest, divide 8 into 72 and get 9 years.
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