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What's More Powerful Than Compound Interest?

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December 06, 2017 – Comments (0) | RELATED TICKERS: PEP , AXS , CBRL

Simple interest is where interest is calculated on the original principal amount and unpaid interest is not added to the principal for future calculations. Compound interest is what occurs when interest previously earned and is unpaid is added to the principle and is considered when calculating future interest - i.e. earning interest on interest. This is an extraordinarily powerful wealth building tool.

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