The good and the bad of compounding interest

By Noel Whittaker
October 3 2019 - 6:00am
Balance: Remember, compounding works exactly the same for borrowers as for investors. If the term is short, the interest can be minimal. But as the term is stretched the interest bill becomes horrendous.
Balance: Remember, compounding works exactly the same for borrowers as for investors. If the term is short, the interest can be minimal. But as the term is stretched the interest bill becomes horrendous.

For years I have been talking about the power of compounding. The amount of money you have when you retire depends primarily on how soon you start, and the rate of return you achieve and the rates effect grows exponentially as time increases.

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