In the last post, we understood the concept behind Simple interest and Compound interest.
In case you haven’t read it: How to calculate Simple interest and Compound Interest?
In this post we will see what wonders compound interest can do.
Let’s first start by comparing the money you have in i) Simple interest ii) Compound interest
Let’s say you put $20000 at 10% interest rate for 25 years.
Below is the graph showing returns through simple interest and compound interest.
Continue reading “Magic of Compound Interest”