Compounding

By Jason Fittler

To make money you need to understand the power of compounding, let's take two examples.

Example 1

Invest $12,000 once a year at a rate of 8% per annum for 10 years.

Result - $173,800

Example 2

Invest $1000 per month at a rate of 8% per annum for 10 years.

Result - $183,350

No extra work, but more money.

End of lesson.