Comments on: Compound Interest is Your Friend [Infographic] http://cashmoneylife.com/compound-interest-investing-infographic/ Money Management, Small Business, Career Wed, 23 May 2012 21:16:10 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Financial Success for Young Adults http://cashmoneylife.com/compound-interest-investing-infographic/#comment-33627 Financial Success for Young Adults Mon, 18 Jul 2011 22:10:13 +0000 http://cashmoneylife.com/?p=2582#comment-33627 Great infographic! Compound interest is definitely the 8th wonder of the world and it's important to understand how it works. Great infographic! Compound interest is definitely the 8th wonder of the world and it’s important to understand how it works.

]]> By: Miranda http://cashmoneylife.com/compound-interest-investing-infographic/#comment-25022 Miranda Mon, 09 Aug 2010 12:13:06 +0000 http://cashmoneylife.com/?p=2582#comment-25022 Thank you for the insight! I had the infographic created by someone else, and apparently missed that. Great catch! Thank you for the insight! I had the infographic created by someone else, and apparently missed that. Great catch!

]]> By: Timothy Ng http://cashmoneylife.com/compound-interest-investing-infographic/#comment-25016 Timothy Ng Mon, 09 Aug 2010 00:41:04 +0000 http://cashmoneylife.com/?p=2582#comment-25016 This is one of the most important financial concepts I learnt at university. Many people are unaware of the power of compound interest over time. This is one of the most important financial concepts I learnt at university. Many people are unaware of the power of compound interest over time.

]]> By: Greg McFarlane http://cashmoneylife.com/compound-interest-investing-infographic/#comment-25010 Greg McFarlane Sun, 08 Aug 2010 02:28:01 +0000 http://cashmoneylife.com/?p=2582#comment-25010 Miranda: Insightful post and a wonderful (and evidently time-consuming) graphic. May I be so bold as to offer a tiny tweak to the formula? Really, it's just a reminder that <i>r</i> is not necessarily the annual interest rate; it's the interest rate <i> per period</i>, however long that period is. If <i>r</i> is an annual interest rate, then in the formula you need to divide it by the number of periods in a year. So for Sally, whose 12% compounds <i>quarterly</i>, you'd divide .12 by <b>4 </b>to get .03. Add that to 1, making 1.03, take it to the power of 120 (the number of quarters, i.e. periods, in 30 years) and multiply by $10,000 to get $347,109.87. Miranda: Insightful post and a wonderful (and evidently time-consuming) graphic.

May I be so bold as to offer a tiny tweak to the formula? Really, it’s just a reminder that r is not necessarily the annual interest rate; it’s the interest rate per period, however long that period is. If r is an annual interest rate, then in the formula you need to divide it by the number of periods in a year.
So for Sally, whose 12% compounds quarterly, you’d divide .12 by 4 to get .03. Add that to 1, making 1.03, take it to the power of 120 (the number of quarters, i.e. periods, in 30 years) and multiply by $10,000 to get $347,109.87.

]]> By: Adam@RabbitFunds http://cashmoneylife.com/compound-interest-investing-infographic/#comment-24962 Adam@RabbitFunds Wed, 04 Aug 2010 13:18:52 +0000 http://cashmoneylife.com/?p=2582#comment-24962 Great infographic. You should make it easily available for reposting and get some link love back to this post. Great infographic. You should make it easily available for reposting and get some link love back to this post.

]]> By: youngandthrifty http://cashmoneylife.com/compound-interest-investing-infographic/#comment-24954 youngandthrifty Tue, 03 Aug 2010 23:08:55 +0000 http://cashmoneylife.com/?p=2582#comment-24954 Cool, this infographic is so cute! Yes, I loveee compound interest. One day it will really work for me (when I am retired early- hopefully). Cool, this infographic is so cute!

Yes, I loveee compound interest. One day it will really work for me (when I am retired early- hopefully).

]]> By: myfinancialobjectives http://cashmoneylife.com/compound-interest-investing-infographic/#comment-24928 myfinancialobjectives Sun, 01 Aug 2010 22:16:47 +0000 http://cashmoneylife.com/?p=2582#comment-24928 Awesome post! I love this graphic, I may just print it out and put it up at work in an effort to try and convince more people to start contributing to their 401k. I love this topic. I have talked abotu it many times in various posts I love it so much. If you are able to truly harness the power of compounding interest at a young age, you can easily retire early. It all depends on how much discipline you have! Awesome post! I love this graphic, I may just print it out and put it up at work in an effort to try and convince more people to start contributing to their 401k.

I love this topic. I have talked abotu it many times in various posts I love it so much. If you are able to truly harness the power of compounding interest at a young age, you can easily retire early. It all depends on how much discipline you have!

]]> By: Moneyedup http://cashmoneylife.com/compound-interest-investing-infographic/#comment-24927 Moneyedup Sun, 01 Aug 2010 21:28:48 +0000 http://cashmoneylife.com/?p=2582#comment-24927 I really enjoyed the compound interest poster. If I had seen this when I was in school I probably would have set aside more money in compound interest investments. Graphics can really help to make something more easily understood. I really enjoyed the compound interest poster. If I had seen this when I was in school I probably would have set aside more money in compound interest investments. Graphics can really help to make something more easily understood.

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