Understanding and leveraging the power of compound interest, says Nirdev Desai, head of sales at PSG Wealth, can be a game-changer.
Its true power is time. Simple interest is calculated only on the original principal amount, while compound interest is calculated on the growth of the principal amount over time.
The greater earning potential can have major implications on investments that are made towards saving for retirement or for other long-term goals, with retirement annuities and tax-free savings accounts offering some of the easiest ways to benefit from compound interest.
Browse through the story below (zoom in or go full screen for ease of reading):
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.