The Power of Compound Interest - Calculations and Examples By Investment Mastery UK

1. The Power of Compound Interest: Calculations and Examples (By Investment Mastery UK) Are you ready to hit the million-dollar mark? Investment Mastery’s compound interest calculator will show you how much your money will grow over time if you invest it and re-invest your profits every year. It provides a projected future balance and breakdown for the time period. What do you get when you combine the power of compound interest with regular, consistent investing? The answer? Massive growth for your wealth. I’m not kidding. Compound interest is basically interest on interest. Compounding Calculator - https://www.investment-mastery.com/compounding/

2. Benjamin Franklin says it best: “Money makes money. And the money that money makes,makes money.” Compound interest is both unbelievably simple and genuinely unique. It’s not hard to see why with this example: You have a sum of money, say £2,000. That £2,000 earns interest every month. Let’s say 3%. Now, that initial £2,000 would amount to £2,852 with just accumulated interest if nothing else were added to it over the course of a year. But hold on. Wait a minute. The calculation should be 12 x 60 over 12 months if 3% of £2,000 is £60. Right, so that's £720. That is not the case with compound interest. Due to the fact that you receive 3% on top of the 3% that is added to each month's total as well as 3% each month. That’s the money that makes money, making money. It’s magic. It’s what Albert Einstein called the Eighth Wonder of the World. Guess what… You can try it for yourself with our very own compound interest calculator. To find out how much your money will increase over time if you invest it and reinvested your profits each year, click the link in the description box below. Okay, then. To gauge compound interest's true power, let's look at it in more detail. Compounding Calculator - https://www.investment-mastery.com/compounding/

3. Author Demi, a well-known American children's book author, has a story called One Grain of Rice: A Mathematical Folktale. Rani, a girl, is depicted in it. And she receives rice for 30 days for each good deed she performs. One grain of rice is given to her on the first day. Over a 30-day period, the daily allotment of rice is doubled. Any idea how much this will cost after 30 days? A staggering 536 million, 870 thousand, 912. It’s true! It's true that this is 100% compounding, but it still shows how powerful compound interest can be. I see. Let's take a look at our very own Investment Mastery compound calculator right away. As you can see, it is very simple to use, and you can easily adjust the amounts in each box to see how much you might receive over time. You'll also observe how significantly different your totals become with just a little bit of a monthly addition. Get it going now and fill in the appropriate boxes with the following amounts. We'll keep the initial investment at £2,000 and the annual interest rate at 3%. As you can see here, after 12 months with nothing else added to that amount, apart from the interest, we end up with £2,852. But now watch this! Compounding Calculator - https://www.investment-mastery.com/compounding/

4. This is pure magic. Let’s see what happens when we top-up the initial investment amount. Let’s put £100 in the “Extra A Month” box. OMG! Wow! See that? Your £2,060 in January becomes a mouth-watering £4,132 by December. It’s nuts right, but absolutely TRUE. Now keep watching… What happens if you keep adding £100 every month for 5 years? You’d have £27,517 After 10 years? £178,422. It’s insane! And that example is with just £100 added every month to your initial £2,000 over 10 years with the 3% interest. Imagine what you could end up with if you topped up more each year? Try it now. Put £1000 in the Additional Top Up” box. Remember, that’s just £1000 added once, at the start of each year. See what you get now after 10 years? Can you believe that!! Compounding Calculator - https://www.investment-mastery.com/compounding/

5. £254,323. And 5 years later that number turns to 1,530,580. That is the impact of compounding! So there you go. You’ve got your initial investment amount. Interest. Extra A Month. Additional Top Up. And of course, don’t forget to change the currency to the one that suits you. Try it for yourself. Maybe you have a sum in mind you want to achieve by however many years? Using our compound calculator makes it all easy to plan for your future and grow your wealth. Now, the crucial thing to bear in mind is... You aren't taking any money out of this account, where the money magic is happening, so that's why it's growing so quickly. You are never going to touch it, I repeat. Not even once. You’re just leaving it there. To GROW. It is crucial to keep this in mind. What you are doing is REINVESTING. Reinvesting is one of the great secrets to growing your wealth. It’s what all the multi-millionaires do, the billionaires. Compounding Calculator - https://www.investment-mastery.com/compounding/

6. Put it this way, they don’t work to earn their vast wealth. They let the money work for them. And that’s what compound interest does. So what does “compound interest” mean? It means more money to you over time. The longer you keep reinvesting, the more money you will earn. Sorry, the more money your money making money will earn. Perhaps you've already heard about the benefits of compound interest. If so, please let us know in the comments section below. It will be interesting to learn what outcomes you have been experiencing. Using compound interest to its fullest potential As you have seen with the compound interest calculator, your money will grow over time if you invest it. Then re-invest your profits every year. Compound interest is vital in finance. It serves as the foundation for numerous investing strategies. For instance, compound interest is advantageous to banks. They benefit because they lend money. Then re-invest the interest they receive by issuing loans or making their own investments. Everything banks do is about making money. Compound interest increases their profits every second of the day and night. Compound interest is the secret to growing your wealth. Compounding Calculator - https://www.investment-mastery.com/compounding/

7. Of course, compound interest isn’t a secret. Mathematicians first discovered it in Babylonian times around 4,000 years ago. Warren Buffett, the most well-known investor of our time, attributes his success to "living in America, some lucky genes, and compound interest." Thing is, compound interest is not just powerful… Compound interest is the driving force that grows your wealth. It is central to strategies of the best investors in the world. That tells you everything you need to know. You should make it yours too. Then sit back and watch your wealth grow. If you were unaware of it before, you are now – compound interest is a miracle. Deceptively simple but awesomely effective. It is worth remembering it is always there working behind the scenes for you every time you invest and earn interest. And earning interest on the interest! You can find out more here with our compounding calculator. https://www.investment-mastery.com/compounding/ Compounding Calculator - https://www.investment-mastery.com/compounding/