Then the income in the first year is 10000×( 1+20%).

The second year is10000× (1+20% )× (1+20%).

The third year is10000× (1+20% )× (1+20% )× (1+20%).

Of course, you can use the complex force calculator directly.

The yield here refers to the annualized rate of return,

It is not the actual rate of return for one year, but the average rate of return obtained every year after investing for many years.

Look at the specific case

For example, Xiaobai has a principal of 65,438+10,000 yuan, invested for 2 years, and the actual annual rate of return is 15%, so the final income of Xiaobai is: 65,438+10,000 *15% *15% =13.203.

Xiaohe also has a principal of 65,438+10,000 yuan, which is invested for 2 years. The actual rate of return in 65,438+0 years is-65,438+00% (investment loss). The actual rate of return in the second year is 46.94%, so the final income of Xiaohe is: 65438+ 10,000 * 90% * 146.94% =

The annualized rate of return of Xiaohe is also equal to 15%, and the annualized rate of return of Xiaohe is not equal to the actual rate of return for one year.

The annualized rate of return cannot be regarded as one year, because the market is volatile and the rate of return cannot be regarded as short-term.

Compound interest is essentially a way of thinking that allows money to generate money efficiently.

Principal = goose? Earned income is equal to goose eggs.

The goose hatched from the original goose and goose eggs keeps laying golden eggs.

Compound interest is to use the principal to earn income first.

Then use the principal+income to invest and earn income together.

Compound interest thinking+compound interest formula and application of compound interest calculator

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Question: According to the compound interest formula, what are the factors that affect compound interest?

Annual return time of principal

Q: What do you think is the advantage of that factor now?

The best time to plant trees is first ten years ago, and then now.

The first key element: principal.

If the principal is small, we should make good use of it.

Put an end to indiscriminate consumption and avoid good investment with insufficient principal.

We should turn the principal into a good expenditure and an asset that can generate money within our ability.

The premise of using it well is not to lose money, and then to make money efficiently.

By investing the principal in high-quality money-making assets, Qian Shengqian can become efficient. Whether the price goes up or down, assets can be converted into continuous cash flow.

The second influencing factor: time.

Suppose two people make a fixed investment of 1 1,000 yuan per month, and the annualized rate of return is 12% (the index fund with fixed investment can be realized completely).

Before and after comparison

? Xiaohe began to invest at the age of 20, * * * investment 10 years. At the age of 3 1, he stopped investing in the principal. Xiaobai insisted on investing at the age of 25!

At the age of 60, Xiaohe had 8,365,438+0,000 yuan and Xiaobai had 6,565,438+0,000 yuan. Even though Xiaobai's investment principal is 3.5 times that of Xiaohe, he still hasn't caught up with Xiaohe. Besides, we can see that Xiaobai always lags behind Xiaohe at all stages of life, just because there is a five-year difference.

This is the power of time, so the sooner you master financial management skills, the sooner you start investing, the better. After all, time can't go back!

The third focus is the annualized rate of return.

The principal is 6,543,800 yuan, the yield is 5%, and the investment is about 430,000 yuan in 30 years.

The principal is 654.38 million yuan, the yield is 10%, and the investment is 30 years, about 1.74 million yuan.

Then the principal is 654.38+million, the yield is 15%, and the investment is 30 years, about 6.62 million.

Then the rate of return is very important when the principal time remains unchanged.

On the other hand, if money is not used there, it will depreciate and there will be a compound interest reaction, which is inflation.

In a word, I feel distressed about investing money in my brain, and I have never understood anything. Either cut by inflation or cut by the investment market, has been poor.

On the contrary, learning from other people's successful methods and transforming them into your own skills is the fastest way to get rid of poverty and upgrade.