Accountancy, asked by prajapatidworld57, 7 months ago

Do you know the power of compounding effect?

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Answered by sudha4877

Answer:

Benefits of the power of compounding

With time, you could gain returns, and the yields on these returns could further generate returns; thus, helping to increase your investments quickly. Saving money and earning compound interest amount every year is a good thing.

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Answered by aradhyasharma1010

Explanation:

The power of compounding works by growing your wealth exponentially. It adds the profit earned back to the principal amount and then reinvests the entire sum to accelerate the profit earning process. Suppose, you invest ₹ 1000 in a bank which offers 10% interest per annum.

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Do you know the power of compounding effect?​

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Benefits of the power of compounding

With time, you could gain returns, and the yields on these returns could further generate returns; thus, helping to increase your investments quickly. Saving money and earning compound interest amount every year is a good thing.

Do you know the power of compounding effect?