Learn About Compounding - Deepstash

Bite‑sized knowledge

to upgrade

your career

Ideas from books, articles & podcasts.

published 4 ideas

Learn About Compounding

investopedia.com

COMPOUNDING;magic trick for being rich.

  • Compounding is the process whereby interest is credited to an existing principal amount as well as to interest already paid.
  • Compounding can thus be construed as interest on interest—the effect of which is to magnify returns to interest over time, the so-called "miracle of compoundin...

4

STASHED IN:

44

COMPOUND INTEREST VS SIMPLE INTEREST.

  • Interest is the cost of borrowing money, where the borrower pays a fee to the lender for the loan.
  • Generally, simple interest paid or received over a certain period is a fixed percentage of the principal amount that was borrowed or lent.
  • Compound interest accrues and is adde...

1

STASHED IN:

37

PROS  OF COMPOUNDING.

THE PROS;

  • Generate Passive Income.
  • Take Full Advantage of Compounding
  • Invest Once and Profit Twice.
  • Maximize Returns with Dividend Reinvestment.

2

STASHED IN:

36

CONS OF COMPOUNDING.

  • No benefits for short term.
  • Twice the Taxation.
  • Adverse Effects of Dividend Policy Changes.
  • High Dividend Payout Risks

2

STASHED IN:

35

0 Comments

Discover and save more ideas by creating a

FREE

Deepstash account.

Develop a

reading habit

, save

time

and create an amazing

knowledge library

.

GET THE APP: