Like we discussed day before yesterday about the eighth wonder of the world – compound interest. Here is one interesting case we came across. Real life case 🙂
Compounding is what multiplies your money.
If the interest rate/ expected interest is – 10% per annum.
Compounding frequency – annual.
Rupees 100 would double in 10 years with simple interest
Rupees 10 would double in 7.25 years with compound interest
Fact: Rs 10,000 invested in Wipro 28 years ago would have been more than Rs 200 crores now. (Know More – Power of Investing in Equities)
Here is a video which will explain how SIP’s can prove to be powerful.
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