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Tuesday, August 18, 2009

The Power of Compound Growth

These hypothetical calculations are used to illustrate the effects of compound growth. The figures reflected are based on an assumed rate of return about 8%, compounded annually.

Albert Einstein once said that compound growth is the 8th wonders of the world. Well, I think he was right. Just see the table above. If one starts saving RM300 every month, in 5 years he will have a handsome RM22,190.

ASB give us average 8% interest annually. But in order to enjoy the power of compound growth, you have to maintain your saving and not withdrawing a single cent from the saving and the dividend you get.

Good luck!


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