Monday, July 5, 2010

How the compound interest works?

Below is an example of the annual compound rate of return that will give you some idea how it works and how it bring a great fortune in your future life.









As you can see from the table above, annual compound rate of return makes the different and the time help you to run your fortune. If the rate of return is low, no matter how long you invest it, it also cannot bring any fortune for you. The best example of the 4% annual compound rate of return is fixed deposit which is offered by our banking system.

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