Monday, April 02, 2007

Article on compund interest

When I was in school, I had a friend who really hated maths. I can remember him telling us that he was going to burn his maths books once he finished school and never going to touch one again. According to him: "After all, it's not like we are going to use it anywhere." At that time I agree with him and thought that we were wasting our time learning trigonometry, algebra, statistics and other stuff that needed calculations.

We were wrong and even though we don't realize it, we use them everyday in or daily life. A good example is compound interest. I really found this article on compound interest and its implications in investments really interesting.

"The purpose of investing money is to earn interest on capital." Understanding how compound interest works could help us choose the best deals on loans as well as in making the right investment decisions.

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