Alnair Finance

Effects of Auto-compounding

Growth whose rate becomes ever more rapid in proportion to the growing total number or size. The simple formula for this is growth = (1 + r)^x , where 'r' = return and 'x' = number of 'times'. For example, your money doubles every year if you get 100% yearly return. After 3 years you would have 8x your original investment.
A typical investment does not just pay out on a yearly basis, but in smaller terms (ie: daily, monthly, etc).