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Monday, 2 February 2015

Compound Interest

The first time I read about compound interest was from the book "MAKE SENSE OF YOUR MONEY" by Mr James Abola. Having understood the principle, I said let me teach my wife what I have found out but more so I gave her the book to read so that she could chew the food and get satisfied on her own. Today as I checked our account, I indeed saw a big change and I must say - knowledge can only be really valuable when put to practice

This is what compound interest is from Wikipedia -
Compound interest is interest added to the principal of a deposit or loan so that the added interest also earns interest from then on. This addition of interest to the principal is called compounding. A bank account, for example, may have its interest compounded every year: in this case, an account with $1000 initial principal and 20% interest per year would have a balance of $1200 at the end of the first year, $1440 at the end of the second year, $1728 at the end of the third year, and so on.

Ben Carson says "No knowledge is wasted knowledge" - God bless you as you keep putting to practice these timeless principles - when you read Mathew 25 about the parable of talents, you can see the difference between a person who puts to practice what he has been taught. My wife and I might not be so far in life but we keep growing little by little and one day we shall testify even more because the steps of a righteous man is ordered by the LORD.

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