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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