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Albert Einstein is purported to have once remarked that the most powerful force in the universe is compound interest. My favorite example of the power of compounding Compound interest is interest on interest. In other words, it's the addition of interest to your original sum of money or loan.
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Compound interest is interest calculated on the initial principal and also on the inflation and reduction of purchasing power. interest does not compound. Compound interest is interest on interest. In other words, it's the addition of interest to your original sum of money or loan.
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There are many ways to make the awesome power of compound interest work for you. If you want to read more, download the free chapter now Compound interest is interest calculated on the initial principal and also on the inflation and reduction of purchasing power. interest does not compound.
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Course Transcript - You have heard the phrase compound interest. In normal practice, all interest is compound interest. For example, 12% compound interest compounded With Compound Interest, (or Powers) like this: Example, 6% interest with "monthly compounding" does not mean 6% per month,
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