Compound Interest Is The Eighth Wonder Of The World

Power Of Compounding
February 20, 2017
Is Stock Market gambling just like Casino ?
July 11, 2017

Compound Interest Is The Eighth Wonder Of The World

Compound interest is the eighth wonder of the world

Albert Einstein the renowned scientist had said.
He who understands it, earns it….. he who doesn’t… pays it.

Compound Interest means is you earn interest on interest!

Take a simple example!

You invest 100 at a rate of return of 10% per year.

In the first year you will get a return of Rs.10. In the second year you will get a return of Rs.11. In the year 10 you will earn 23.6 and in 10 years your 100 will grow to 259! !

It is not only simple but amazing

1 100 10 110
2 110 11 121
3 121 12.1 133.1
4 133.1 13.31 146.41
5 146.41 14.64 161.05
6 161.05 16.1 177.15
7 177.15 17.71 194.87
8 194.87 19.48 214.35
9 214.35 21.43 235.8
10 235.8 23.58 259

Just imagine this, you are a young 20 year old… and on JUST one day… instead of having your branded coffee for 125! You opted for the street coffee at Rs. 25.

The amount 100 saved on just one day invested at 15% per year for the next 40 years. How much would your saving of just Rs.100 converted ? Rs. 26,786.

There is a simple sure-shot formula to get rich. Start saving and investing early, compound regularly at reasonable rates of return.

Equity markets give highest returns compared to all asset classes and also include benefit of compounding as we know. Invest for long term in Value pick stocks and multibagger stocks and get unbelievable returns over long term horizon.

Leave a Reply

Your email address will not be published. Required fields are marked *