1% Better • 7m
"The best way to predict the future is to create it." – Peter Drucker Today, we’ll focus on Finance Concepts. Concept of the Day: Compound Interest Compound interest is a fundamental finance concept that builds wealth over time. Let’s explore it in a story format. Story: The Tale of Two Investors Once upon a time in a village, there were two friends, Ravi and Kiran. Both decided to start saving for their futures at the age of 20. Ravi saved ₹10,000 every year in a simple savings account that earned 5% simple interest. Kiran, on the other hand, found a smart investment plan offering 5% compound interest. Ravi’s Path: Ravi earned interest only on his initial amount. By the time he turned 30, he had saved ₹1,00,000 (₹10,000 × 10 years). His interest totaled ₹50,000, giving him ₹1,50,000 in his account. Kiran’s Path: Kiran reinvested the interest she earned each year, so her money grew exponentially. Over 10 years, her account grew to ₹1,62,889, even though she also started with ₹1,00,000. By the time they reached 50, Ravi’s account had grown to ₹2,00,000, while Kiran’s account ballooned to ₹6,72,750. Kiran’s wealth multiplied faster, all thanks to compounding! Key Takeaways Compound Interest Formula: A=P(1+r/n)^nt Where: A = Future Value P = Principal Amount r = Annual Interest Rate (in decimal form) n = Number of Times Interest is Compounded per Year t = Time (in years) The earlier you start investing, the more time your money has to grow exponentially. Compound interest works best when you reinvest your earnings and think long-term.
Partner at D P S A &... • 11m
AVOID this mistake WHILE taking deduction of interest (saving +fixed deposit)in your ITR🔴🔴🔴🔴🔴 Since ITR Season is around, highlighting common confusion ➡️For Individual & HUF - We can take a max deduction of 10,000 on interest from a savings a
See MoreNot just billing, A ... • 2m
DAY-1 Ravi stood behind the counter of his small kirana store when a boy pointed at a crushed biscuit packet. His mother looked at it, frowned, and left. Another lost sale. Ravi sighed, holding the damaged packet—just another result of poor restocki
See MoreBussiness Developmen... • 7m
Winning Against the Odds: How One Small Business Secured a Tender A Dream Worth Pursuing Ravi Kumar, the founder of BuildRight Constructions, had always dreamed of taking on larger projects. However, competing against industry giants felt impossible
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