Comments on: What is compounding and why is it so important in decisions such as comparing investments, loans, debt payoff? http://www.bankruptcylegals.com/taxdebt/51/debt/what-is-compounding-and-why-is-it-so-important-in-decisions-such-as-comparing-investments-loans-debt-payoff/ Deep in debt? Facing Bankruptcy? Get the help you need now. Sat, 01 May 2010 07:15:18 +0000 http://wordpress.org/?v=2.9 hourly 1 By: Terry http://www.bankruptcylegals.com/taxdebt/51/debt/what-is-compounding-and-why-is-it-so-important-in-decisions-such-as-comparing-investments-loans-debt-payoff/comment-page-1/#comment-149 Terry Sat, 06 Feb 2010 19:38:46 +0000 http://www.bankruptcylegals.com/taxdebt/51/debt/what-is-compounding-and-why-is-it-so-important-in-decisions-such-as-comparing-investments-loans-debt-payoff/#comment-149 Compounding means you don't take money out of a fund; you leave the interest in there to earn more interest. For example, if I have $100 and I earn 10% in the first year, I have $110. If I don't add any more money, but leave that interest in the account, the next year at 10% I earn $11. This is the power of compounding. Most people get rich by saving early, then leaving the money alone for 20 years or more - compounding takes care of the rest. Compounding means you don’t take money out of a fund; you leave the interest in there to earn more interest.

For example, if I have $100 and I earn 10% in the first year, I have $110. If I don’t add any more money, but leave that interest in the account, the next year at 10% I earn $11. This is the power of compounding.

Most people get rich by saving early, then leaving the money alone for 20 years or more – compounding takes care of the rest.

]]> By: D. V http://www.bankruptcylegals.com/taxdebt/51/debt/what-is-compounding-and-why-is-it-so-important-in-decisions-such-as-comparing-investments-loans-debt-payoff/comment-page-1/#comment-150 D. V Sat, 06 Feb 2010 15:32:15 +0000 http://www.bankruptcylegals.com/taxdebt/51/debt/what-is-compounding-and-why-is-it-so-important-in-decisions-such-as-comparing-investments-loans-debt-payoff/#comment-150 I found the perfect article for you: http://greenarrowinvestments.com/retirerich.aspx This explains compounding very well. (i think) I found the perfect article for you:

http://greenarrowinvestments.com/retirerich.aspx

This explains compounding very well. (i think)

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