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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 compounding."
- When banks or financial institutions credit compound interest, they will use a compounding period such as annual, monthly, or daily.
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MORE IDEAS ON THIS
PROS OF COMPOUNDING.
THE PROS;
- Generate Passive Income.
- Take Full Advantage of Compounding
- Invest Once and Profit Twice.
- Maximize Returns with Dividend Reinvestment.
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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...
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CONS OF COMPOUNDING.
- No benefits for short term.
- Twice the Taxation.
- Adverse Effects of Dividend Policy Changes.
- High Dividend Payout Risks
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Biotechnology student passionate about business,writing and good design. Topics i post about : 👉 Marketing. 👉search engine optimization. 👉 philosophy insights 📘
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