Compound interest

Compound interest

When it comes to calculating interest, there are two basic choices: simple and compound. Simple interest simply means a fixed percentage of principal each year and is rarely used in practice. On the other hand, compound interest is applied to both loans and deposit accounts. Compound interest basically means “interest on interest” and this is […]

Compound interest

Compound Interest Graph, March 2016

In its Guide to Retirement 2016, JP Morgan Asset Management included a powerful illustration of how compound returns lead to huge differences between investors who start young and those who wait until later in their careers to save seriously. . JPMorgan presents the results of four hypothetical investors who invest $ 10,000 per year at […]