Compund Interest is like whenever interest is calculated, its based on both original principal, and on any unpaid interest that has been added to the principal. The faster the interest is compounded, the faster the balance will grow.
The rule of 72 is a easier way to determine how long an investment will take to double, given a fixed annual rate of interest. By dividing 72 by the annual rate of return, investors can get a close estimate of how many years it will take for the initial investment to double.
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