Money - How much can I make?
At the least, taking almost no risk, you can make more than enough to maintain the purchasing power of your money. The very best investors earn 20% or more annually on their investments.
If you reinvest the money you earn, you then make a percentage on the earnings as well as on the original amount. The investment is said to be "compounding". Dividing 72 by the percentage at which an investment is compounding gives an approximation of the time it takes for the investment to double. If you earn 12% annually and reinvest the earnings, your money will double in six years (72 divided by 12). In thirty years, you will have doubled your money five times, multiplied it by 32!
The power of compounding over longer periods is surprising. You might do the math to see what happens if you add a thousand dollars to your investments each year for X years compounding at Y percent. You can begin with small amounts of money and do very well.
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