Now invest in buying a house or invest in buying compound interest

Compound interest, of course!

Buy Manhattan for $24! This is not an absurd dream, but a long-standing story, a wish that can be realized, and a cliché investment method, but not many people can do it.

The story goes like this: In 1626, Peter Minuit, the governor of the Dutch province of New Netherlands, bought Manhattan Island from the Indians for about $24. By January 1, 2000, the island of Manhattan was worth about a trillion dollars.

Buying Manhattan for $24, Peter Minuit undoubtedly took a big advantage.

However, if you change your mind, Peter Minuit may not have taken advantage. If the Indians at that time had invested the $24, the $24 would have become $23.8 trillion by 2000 based on the investment income of 11% (the average return on investment in the United States in the past 70 years), far more than the trillions of Manhattan Island and almost 100,000 times its current value. In this way, Peter Minuit has suffered a big loss.

What is the magical force that allows assets to multiply so dramatically?

Investing in buying a house is more stable, but now that house prices have been falling, you should wait to buy a house.

Now that the ** of the house is controlled by the state, I think it is time for the house to have a turn and start falling!

Compound interest refers to the method in which the interest of a certain interest-bearing period is calculated by adding the principal plus the total amount of interest accumulated in the previous period when calculating interest, which is commonly referred to as interest"Lee says yes"，"Profit rolling"

Compound interest is calculated by calculating the principal and the interest accrued together, that is, the interest is advantageous.

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The present value of compound interest refers to the principal amount that must be invested in order to reach a specific amount of money in the future. The so-called compound interest, also known as interest on plus interest, refers to the method of making a new round of investment with interest after a deposit or investment has been returned.

The final value of compound interest refers to the sum of the principal at the end of the agreed period after the interest is obtained within the agreed period, the interest is added to the principal and the interest is recalculated, and the sum of the principal at the end of the agreed period is rolled over to the agreed period. To put it simply, it is to deposit A at the beginning of the period, with i as the interest rate, and the sum of the principal and interest after depositing n periods. Formula:

f=a*(1+i)^n.

For example, if the principal amount is 50,000 yuan, the interest rate or return on investment is 3%, and the investment period is 30 years, then the interest income obtained after 30 years is calculated according to the compound interest calculation formula, and the sum of principal and interest (final value) is: 50,000 (1+3%) 30

Since inflation and interest rates are closely related, like two sides of the same coin, the formula for calculating the final value of compound interest can also be used to calculate the actual value of a particular fund in different years. Just swap the interest rate in the formula for the inflation rate.

Principal. For example, if you want to raise a pension of 3 million yuan after 30 years, assuming that the average annual rate of return is 3%, then the principal that must be invested now is 3000000 (1+3%) 30

Lev on Gali. Assuming the interest rate is 10%, the principal is 100 yuan and the interest is 10 yuan in the first year. In the second year, the principal will become 110 yuan and the interest will be 11 yuan. In the third year, the principal is 121 yuan, and the interest yuan is so on.

Hello, compound interest refers to an interest calculation method that includes investment interest in the principal and continues to generate interest, which corresponds to simple interest.

For example, the principal is 1000 yuan, 5% compound interest, the sum of principal and interest for one year of investment is 1000+1000*, the sum of principal and interest in the second year is 1050+1050*, and the third year is.

The principal amount is 1000 yuan, 5% simple interest, the sum of principal and interest for one year of investment is 1000 + 1000*, the sum of principal and interest for the second year is 1050 + 1000*, and the sum of principal and interest for the third year of investment is 1100 + 1000*

Bank deposits are generally simple interest mode, loans are generally compound interest mode, and annuities are generally compound interest mode.

For example, if you invest in a product with an annual interest rate of 7%, then your principal will double after 10 years.

It's amazing to make a profit with the money you earn.