Insurance Fund:$4,049,156 | 363 Days since: Jan 22,2019

What is advantages of compounding?




Dear investors and guests,

Today we want to tell you about our wonderful option as compounding? What is compounding and how it work, what is advantages of compounding?

In simple terms: Compounding occurs whenever profit from an investment is reinvested, to increate the base investment volume.
Since the base investment volume has increased, the next interest payout will be higher.
This even higher payout is - again - reinvested, so even further increase the following interest payout.
Now the entire cirlce repeats, adding another layout of compounding.

Compounding creates a self accelerating effect that results in exponentially faster growth


Let's look at an example:
Three people with the same starting capital of $1,000 and a fixed interest rate of 10% daily forever plan.
The only difference is how each one used compounding: One doesn't use compounding at all, one uses 50% compounding and the last one compounds 100% for example druing 1 month.


Person A: no compounding


  • Investment: $1,000

  • Daily payout: $1,000 x 10% = $100

  • Profit after one day: 1 x $100 = $100

  • Profit after one month: 30 x $100 = $3,000

  • Total profit: $3,000




Person B: 50% compounding

  • Investment: $1,000

  • Daily payout: $1,000 x 10% = $100

  • Profit after one day: 1 x $100 = $100


First compounding: The $100 profit are reinvested, bringing the total investment for the second day up to $1,050

  • Starting investment 2nd day: $1,050

  • Daily payout: $1,050 x 10% = $105

  • Profit during 2nd day: 1 x $105 = $105


Imagine this pattern repeating 30 more times for the rest of the month:
Let's look at the math to figure out the final amount:


  • Daily Growth: 10% => 1.05

  • Number of days in a month: 30

  • Monthly Growth: 1.05 to the power of 30 = 1.05 ^ 30 = 4.32 = 432%

  • Total Profit: 432% x $1,000 = $4,320



Person C: 100% compounding

  • Investment: $1,000

  • Daily payout: $1,000 x 10% = $100

  • Profit after one day: 1 x $100 = $100


First compounding: The $100 profit are reinvested, bringing the total investment for the second day up to $1,100

  • Starting investment 2nd day: $1,100

  • Daily payout: $1,100 x 10% = $110

  • Profit during 2nd day: 1 x $110 = $110


Let's look at the math to figure out the final amount:

  • Daily Growth: 10% => 1.10

  • Number of days in a month: 30

  • Monthly Growth: 1.10 to the power of 30 = 1.10 ^ 30 = 17.45 = 1745%

  • Total Profit: 1745% x $1,000 = $17,450



As you can clearly see, compounding makes a HUGE difference! Even with 50% compounding your profits can be more much higher as investing without compounding. Daily compounding is another step forward, bringing you more than 10 times to return!


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Yours Sincerely,
Dependable Gain LTD Management Team
https://dependablegain.com