1.) Without compound interest, you would earn only $8800.00. This means that thanks to the power of compound interest you will earn an additional $1191.83 in interest at the end of the 5 year term.
2.) Using the compounded interest formula, you will earn $22883.01 after the 7 year term.
3.) Because of the negative interest, the compounded amount is only $695,929.30.
4.) Putting money in a saving account is saving money with a lower earning compared to investments. Investments have the higher potential of earning more than just having a basic savings account.
If you don't have compound interest, you would earn only $8800.00. This means that thanks to the power of compound interest you will earn an additional $1191.83 in interest at the end of the 5 year plan.
