11/4/2023 0 Comments Compound interest tables pdfThe investment period is also positively related to compound interest.The higher the interest rate, the more you will accumulate in your investment period. The rate of return is positively related to the compound interest.Hence, in the long term, you can generate more wealth due to the power of compounding.Ĭompounding interest is affected by two factors: Rate of return and Investment period: This process continues yearly, and you earn interest on the combined balance of principal and earned interest. Then, this interest is added to the principal, and in the next period, interest is calculated on this combined balance. It starts with when your investment starts earning interest. Compound interest calculates interest on the principal and interest components.
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