Escal, Queen Mhaiel M.

1. When is compound interest your friend?

- When you build your savings deposits over time and collect interest on them, compound
interest is your best friend. Once you receive the highest interest rate possible, it becomes a
more valuable friend.

2. When is compound interest your enemy?

- Those who have unpaid debt pay interest on their debt rather than earning it and the interest
amount is increased. Compound interest is their biggest enemy in this situation because it
makes the remaining balance on the debt much worse.

Present data or computation of the interest earned. Collaborate with each other, then individually

make a reflection about compound interest.

- From the perspective they have, compound interest refers to the amount of debt that an individual
may accrue, particularly when those obligations encompass both the friend's costs and the original debt.
Upon obtaining the necessary information, they can calculate the anticipated interest rate. Only the first
period's interest is shown in this computation because savings accounts only accrue compound interest.
Instead of merely informing them of the interest they earned, the compound interest formula shows
them their entire balance after a predetermined number of periods.

REFLECTION OF COMPOUND INTEREST

Debt frequently comes to mind when someone mentions interest. However, if you're
collecting interest on money you've saved and created, it may work to your advantage.
If you're ready to put your money to work for you, there is in fact an easy approach to
achieve those goals. You can increase your wealth enormously by using a technique
known as compound interest, which is interest paid on both the initial investment and
all interest added to it. Compared to simple interest, compound interest generates
greater interest. I now know that compound interest is the best option for investing. I
have discovered that it is advisable to begin saving as early as possible for retirement
investments, as this will ensure that you have a larger corpus when the time comes. One
definition of compound interest is interest that is computed on both the original
principal and the interest that has accumulated over time. Consider it as the "interest on
interest" cycle that contributes to the quick accumulation of wealth. In comparison to
simple interest, which is interest based solely on principal growth, compound interest
will cause a deposit or loan to grow more quickly. Your initial investment yields interest,
but you also receive interest compounded annually. The concept of compounding
returns is similar to putting your money to work for you because of this, which also
explains why compound interest can cause your wealth to expand rapidly. You don't
need to save as much money to achieve your goals since compound interest allows your
wealth to increase more quickly.