Compounding, Time-Value of Money and Retirement Planning
Not what you're looking for?
Need some help in writing a 1 page brief explaining compounding, the time value of money, and the importance of retirement planning and investing.
Please include the references and please do not copy the references word for word.
Purchase this Solution
Solution Summary
Need some help in writing a 1 page brief explaining compounding, the time value of money, and the importance of retirement planning and investing.
Solution Preview
Compounding:
From a layman's perspective, compounding can be referred to the process of generating earnings from previous earnings, that has been reinvested. In other words, it is the process wherein earnings generated by an asset are reinvested in order to generate more earnings via that additional investment. For example, let's say that interest earned on $100 for 1 year @5%, ie, $5 is reinvested in the principal amount of $100, which makes the total principal $105. Now, from 1st year onwards, interest will be generated on $105 (the new principal amount after reinvested interest), instead of $100 ...
Education
- BComm, University of Delhi
- Post Graduate Diploma in Management (Equivalent to MBA), All India Management Association
Recent Feedback
- "Thanks"
- "Thanks"
- "Very good! "
- "thanks"
- "Thank you!"
Purchase this Solution
Free BrainMass Quizzes
Operations Management
This quiz tests a student's knowledge about Operations Management
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Basics of corporate finance
These questions will test you on your knowledge of finance.