What is compound interest? Many friends who do not know about investment do not understand the basic concept of compound interest. Here is an introduction to what compound interest is and how we can obtain compound interest. I believe you must have a deeper understanding of compound interest.
Einstein once said that "compound interest is the eighth wonder of the world." The power of compound interest is huge, and the power of pursuing compound interest is the power of our capital accumulation.
In fact, the secret of compound interest is the reinvestment of capital, which is often referred to as interest rolling. In the process of investment, we calculate the interest by taking the interest of the previous investment as the principal of the next period, which is compound interest.
The opposite of compound interest is simple interest. For example, for fixed deposits of banks, the default is simple interest. From the perspective of income, the income of compound interest is higher than that of simple interest, and the longer the investment time is, the greater the income of compound interest will be.
