In this topic, we will study compound interest, one of the key concepts in finance that we must understand to make it work for us.
Before I start, I have to warn you that this topic is somewhat more technical than the rest. However, my goal is for you to understand the concepts. You don't need to memorize any formulas, but you do need to understand how they work.
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- The snowball effect
Understanding the snowball effect is essential to making compound interest work for us to its full potential. Below you will see what it consists of, examples of its power and the ways to use it.
Here are the spreadsheets used in the lesson:
- The importance of starting investing as soon as possible (Excel)
- The importance of starting investing as soon as possible (Open Office)
- The snowball effect (Excel)
- The snowball effect (Open Office)
As always, for any questions, I am here at your disposal.