googled and found this,...
effect of compounding effect in share market
https://www.amgfunds.com/research_and_insig...ompounding.html
Suppose you invest $10,000 into Cory’s Truck Company. The first year, the shares rise 10%. Your investment is now worth $11,000. Based on good performance, you hold the stock. In the second year, the shares appreciate another 10%. Therefore, your $11,000 grows to $12,100. Rather than your shares appreciating an additional $1,000 (10%) like they did in the first year, they appreciate an additional $1,100, because the $1,000 you gained in the first year grew by 10% too.
If you extrapolate the process out, the numbers have the potential to grow as your previous earnings start to provide returns. In fact, $10,000 that returns 10% annually for 25 years would grow to nearly $110,000— and that’s without investing additional money. Keep in mind that the examples presented throughout this paper are hypothetical, and actual returns will be different, much less predictable and potentially negative.
more and some youtube too...
https://www.google.com/search?q=compounding...sclient=gws-wiz
Personal Financial Management V3, It's all about managing your $$$
May 18 2021, 09:50 PM
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