The Wonder Of Compound INterest

Here is another example of how $ 300 a month can give you money after 30 years invested. “Without earn interest, leaving the money under the mattress of the bed or in a shoe box, $ 300/month accumulate $ 108,400 in 30 years. – At 5% annual interest, the $ 300/month would generate $ 245. 609 (2. Three times the principal amount) – At 8% annual interest, the $ 300/month would grow up to $ 425. 283 (4 times the principal amount) – At 15% annual interest, the $ 300/month would grow up to $ 1. 69 million (15 times the principal amount) – At 25% annual interest, the $ 300/month would grow up to $ 13. 14 million (121. 6 times the principal amount) Is it unreasonable to think that we will earn 25% interest compounded annually for 30 years? It is not unreasonable, but neither is easy.

Warren Buffet, investor special, has achieved an average gain of 25% for 50 years, but he is an exception to the rule. What is the interest that could be pointing? I would say that 8% annual interest rate is appropriate, any business or investment, you appear selling at a higher interest rate, would you say is very risky and we should let it go. While Wall Street, its main indicator, Standard & Poors 500 (S & P500) has generated revenues of 12. 08% annually over the past 50 years, it is also true that today many companies and individuals are offering exorbitant profits are nothing but deception, and pyramids that do not come to anything and only make you lose all your money (like the very famous case “Madoff” or if “the Tour” on Venezuela). How long to double my money?

Albert Einstein once said once, about a question which was, in his opinion, the Eighth Wonder “For me, the eight wonder of the world is compound interest. He came to decipher what is known as Rule 72, which determines when your money can be doubled. In our example, if you’re going to have 8% annual interest, it means that your money will double in value every 72 / 8 = 9 years. For a return of 20% annual interest, your money could double every 72 / 20 = 3. 6. We have the discipline to get that money for our expenses, the wisdom to choose a financial instrument that we generate interest and secure ongoing long-term, and the patience to let your money grow with the magic of compound interest.

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