Saturday, 8 October 2016

Power of Compounding


Compound Interest is the eighth Wonder of the World, He Who Understands it, earns It… he who doesn’t Pays for It.
-          Albert Einstein

In the following table, one can understand what difference can compound interest and time together can make to Rs. 100, when compounded at different rates for different period.

Time(Yrs.)

Rate(%)

10

25

35

50

5%

162.88

338.63

551.6

1146.73

15%

404.55

3291.89

13317.5

108365.7

25%

931.32

26469.7

246519.03

10947644.3

35%

2010.65

181277.77

3644868.78

328615788.00



Key Takeaway: Time is the best friend for good business and worst enemy of a bad business

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