A great tool to have in your toolbox when you look at your investments earning compound interest is the “Rule of 72”. The Rule of 72 is a mathematical principle that estimates the time it will take for an investment to double in value and is a basic formula anyone can use. Simply take the number 72 and divide it by the interest earned on your investments each year to get the number of years it will...
The principle is simple: A rand invested at a 10% annual return will be worth R1.10 in a year. Invest that R1.10 and get 10% again, and you’ll end up with R1.21 two years from the day of your original investment. The first year earned you only R0.10, but the second year generated R0.11. And that is the basic principle of compound interest – gains on gains. Increase the time and the amount invested and...
In short, with simple interest, you only earn interest on the initial amount you invested, whereas compound interest is “interest earned on interest” and it is calculated on the principal amount as well as the previous period’s interest. Compound interest has the potential to earn more returns than simple interest. An investment grows exponentially with compound interest because it is based on...
If you start saving only a small amount, early in life, it can lead to a larger savings pot than if you were to save a large amount much later in life… With this in mind, would you rather have R1,000 per day for 30 days or R1 that doubled in value every day for 30 days? Those in the know would choose the doubling of R1. Why? Because, at the end of 30 days, they would have accumulated over R500...
Client Value Proposition Applicants will be able to access up to105% of the property purchase price.Properties that qualify include–new developments, sectional title, & free-hold.If at least one applicant chooses to move their primary transactional account to Nedbank and meet our Main Banked Criteria they will receive a interest rate concession of 0.50% where the LTV is larger than 100% and the...