this but it surely goes on to reiterate this modern tool to maximize returns for the many millions of risk averse investors whose contribution in the forex or equity. However absurd it might sound if you are using it on your investments, it is perhaps just the few unique ways where the interest rate acts as a financial tool to further your profits. The rate of interest accrual is of course dependent on the period over which interest is calculated whether it is annually, bi-annually or quarterly.
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However, whenever you opt for such tools of investment pay attention to the fine print and related expenses. What Albert Einstein Says About Compound Interest Perhaps in this context it becomes particularly pertinent to know how one of the greatest minds on earth, Albert Einstein viewed the concept of compounding interest. As you fill in the times, the rate of interest and principal amount, you will easily get the final figure based on the different parameters and time periods that you calculate. P is principal or the original deposit in bank account. In this case, the total outgo is 6802.44, and the interest outgo would be 1802.44 for the same period: 5,000 (18)4 5,000 6,802.44 5,000 1,802.44, similarly in case of cash investments, the rate of interest when calculated the compounded way adds on to the interest.