I don’t understand it like at all. I’ve heard it’s beneficial moneywise but I don’t understand why or how to invest in compounds??
Reading online it seems that it’s beneficial however that’s all I seem to understand so if it is something to look into and invest in I’d like to Understand it better 🙂
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You have $1 in the bank that makes 5% per month. At the end of the 1st month, you now have $1.05.
Month 2: $1.05 + 5% = $1.10
Month 3: $1.10 + 5% = $1.16
Month 4: $1.16 + 5% = $1.22
Each month, you are making interest on interest you previously earned, which is called compounding interest.
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