let****@catgroup.uk
09/11 01:11
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investment to $10,800. In the second year, you would earn 8% on the new total, which is $864. Now your total
stment would be $11,664.
As you can see, with compounding, the returns start to compound on themselves, leading to significant growth over time. The longer you stay invested and reinvest your returns, the more pronounced this effect becomes.
This demonstrates the importance of starting to invest early and staying invested for the long term. By harnessing the power of compounding, you can potentially build significant wealth over time.
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