Effects of compounding interest
Compound interest means interest earned on top of previous interest. The interest you earn on a principal amount is reinvested as part of the principal amount so that in the next cycle, you’re not earning interest just on the original principal amount but the combination of the principal amount and the interest earned so far. Whether for the good or the bad, compound interest affects us all by thousands of dollars. Credit card debt, retirement accounts, personal loans, investments, and so on – compound interest is everywhere and changing our finances as we speak. You need to get a good […]
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