A study of 'Compound Interest'. What it is, how it works, and what advantages and disadvantages it has.

Compound pursual

- What is Compound Interest?

- How does it work?

- Different Formulas

- At ar the advantages and disadvantages of Compound Interest?

- What does Compound Interest wet to me?

- What does it mean for the world?

Compound interest is a smart and easy port to get rich. Although it takes a long time, the outcome is rewarding. The dictionary describes defines deepen interest as: Interest paid both on principal and on interest earned during prior intensify periods. Essentially, compounding involves adding interest to the sum of principal and any previous interest in order to calculate interest in the next period. To me, compound interest is pretty a lot the way matchless sum total of money receives interest (interest is a small portion of an amount of money that you deposit into a bank, and for keeping your money in the bank, they pay you interest. Interest is commonly anywhere between 0.1-30%. The average is about 1.5-6 % interest a year.), and then after a year receives the same percentage of interest but on the already accumulated amount of money. (the amount that has already gotten interest added on the year before). This goes on until the money is taken out, or the interest tramp is changed, or any other disruptions change the banks systems. Bank breaks down etc.

Compound Interest works in a fairly simply and very(prenominal) systematic way. Lets say Bob puts $ snow.00 in the bank. The interest rate is 4% a year.(4% of the $100) After one year, Bob looks okay at his amount of money, and suddenly he has $104.00. This is because after one year he has collected his interest. Because his interest rate was 4%, he collects 4% of his original $100. 4% of $100.00 is 4, because [4/100= 0.04, 100%= 4(amount/total*100%)]...

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