Power of Compounding: Those who understand it, earns it and those who doesn't pays it.
Friends its eleven months have been passed since my last blog in which I have mentioned that we will learn about power of compounding in next blog, now time has come to learn about “ Power of Compounding” . Albert Einstein have once described Compounding as “The Eighth Wonder of The World” : Those who understand it, earns it and those who doesn’t pays it. We all have solved sums on compound interest but never gone into depth of compounding, how it effects our investment value. How one step can change whole of your investment value. We will learn all those effects of compounding, how investment value changes over period of time and why Einstein have described it as “The Eighth Wonder of The World”. Original Investment Value of Rs. 1 Lakh with different time horizons and rate of return: Years & Rate 6.00% 8.00% 10.00% 12.00% 15.00% 18.00% 20.00% 25.00% 2 1.12 Lakh 1.17 Lakh 1.21 ...