Yes! We all have an emergency expense from time to time. So, you are no exception. You might need some extra cash for medical costs, a car repair, or emergency home repair expenses. Whatever be the case, you are exploring your options on payday loans online. A word of caution about payday loans: Payday loans are extremely expensive and they can easily trap you in a debt cycle. You might want to consider personal loans instead which have a more favorable interest rate and terms. ZippyLoan offers personal loans from $100 – $15000 within 24 hours no matter your credit score…
Author: Fabi Pmoto
Fabi Pmoto
As a passionate enthusiast of finance, I've embarked on a journey of discovery, driven not by professional credentials but by a deep-seated curiosity about financial topics like Mortgages, Personal Loans, Taxes, Income, Investments, Insurance, Credit Cards, Credit Scores, as we as small business Finance. I ONLY POST THESE ARTICLES FOR INFORMATIONAL PURPOSE ONLY!!! You should always seek advise from a relevant Financial Expert before making any financial decisions.
Interest compounded daily refers to the method by which interest on a sum of money is calculated on a daily basis and then added to the principal sum. This means that the interest that is added to the principal on one day will earn interest on the next day, and so on. This process of earning “interest on interest” is what makes compound interest grow at a faster rate than simple interest. You can read more about “The power of Compound Interest”.The formula to calculate compound interest is:A = P(1 + r/n)ntWhereWhen interest is compounded daily: “n” = 365 (assuming…
Investments with compound interest are the cornerstone of building wealth over time. This principle, where earned interest is reinvested to generate its own earnings, can transform small initial sums into impressive totals. Below is a quick view of the 11 investments with the compounding effects.#Investment OptionBrief Description1Stocks (with DRIPs)Own a stake in a company. Reinvest dividends to acquire additional shares, leveraging compound interest.2Mutual FundsPool money for a diversified mix of assets. Reinvestment leads to compound growth.3Retirement Accounts (401(k)s, IRAs)Offer tax benefits amplifying compound interest. Reinvested profits grow at a compounded rate.4REITsOwn/finance income-producing real estate. Reinvest dividends for compound growth.5Robo-Advisors &…
Investors and financial analysts often seek a clear and concise measure to gauge the performance of their investments over time. The Compound Annual Growth Rate (CAGR) is a key metric that serves this purpose, offering a smooth and consistent rate of return that can be easily compared across different investments. In this guide, I’ll delve into the meaning of CAGR, how to calculate it, and its practical applications in the world of finance.Basic Concept of Growth Rates:Before you and I focus on CAGR, it’s important to understand the basics of growth rates. Think of growth rates like the speedometer on…
Knowing how to Calculate Compound Annual Growth Rate (CAGR) is straightforward and can be very informative when analyzing investments over time. Here’s a step-by-step guide along with the formula and a hypothetical example. You will also see a graph to visually represent the investment’s growth.Steps on how to Calculate CAGRStep 1 – Identify the Beginning Value (BV) of the Investment: This is the initial amount of money invested or the value of the investment at the start of the period.Step 2 – Identify the Ending Value (EV) of the Investment: This is the value of the investment at the end…
The Time Value of Money (TVM) is a fundamental financial concept that posits money available now is worth more than the same amount in the future due to its potential earning capacity. This concept is the foundation for many financial decisions, from personal savings to corporate finance.Key Principles of TVM1. Present Value (PV)The Present Value (PV) is a fundamental concept in finance that describes the current worth of a future sum of money or stream of cash flows, given a specified rate of return. This concept is based on the principle that a dollar today is worth more than a…
While many sing praises about the magic of compound interest, it’s equally essential to discuss its disadvantages. In this guide, we will delve deep into the disadvantages of compound interest and how they can impact your financial decisions.Before we delve into the downsides, it’s essential to grasp the concept. Compound interest refers to the interest calculated on the initial principal, which also includes all the accumulated interest from previous periods on a deposit or loan.Read More on What compound interest is.10 disadvantages of Compound InterestCompound interest can work in your favor when you’re earning it but can become a burden…