Tuesday, July 03, 2007

Magic of Compounding!!!!

Compounding is wonderful. A 10% return/ month will increase to a sizeable amount after 2 years.
10%/month annualized is 285% return! I like that kind of return.

Here is a example of 10%/ month compounded monthly.

Time Amount
Month 1 $10,000
Month 2 $11,000
Month 3 $12,100
Month 4 $13,310
Month 5 $14,641
Month 6 $16,105
Month 7 $17,716
Month 8 $19,487
Month 9 $21,436
Month 10 $23,579
Month 11 $25,937
Month 12 $28,531
Month 13 $31,384
Month 14 $34,523
Month 15 $37,975
Month 16 $41,772
Month 17 $45,950
Month 18 $50,545
Month 19 $55,599
Month 20 $61,159
Month 21 $67,275
Month 22 $74,002
Month 23 $81,403
Month 24 $89,543

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