{"id":4918,"date":"2021-07-15T16:41:18","date_gmt":"2021-07-15T14:41:18","guid":{"rendered":"http:\/\/weekly.uhm.org.mt\/?post_type=article&p=4918"},"modified":"2021-07-15T16:43:30","modified_gmt":"2021-07-15T14:43:30","slug":"it-tim-gemma-aggorna-l-kalkulatur-tal-compound-interest","status":"publish","type":"article","link":"http:\/\/weekly.uhm.org.mt\/en\/article\/it-tim-gemma-aggorna-l-kalkulatur-tal-compound-interest\/","title":{"rendered":"Introducing the My \u0120EMMA Compound Interest Calculator"},"content":{"rendered":"\n
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(Download the \u0120EMMA calculator by clicking <\/em>here<\/em><\/a>)<\/em><\/em><\/p>\n\n\n\n

The compound interest principle is one of the most important principles in money management.  Compound interest and time are your most effective strategy tools to accumulate savings.  Even small deposits to a savings or a retirement plan started early and invested over the long term will significantly add up over time.<\/p>\n\n\n\n

Compound interest can be defined as the addition of interest calculated on the initial savings or investment (the technical word use is \u2018principal\u2019) \u2013 or interest on interest.  Compound interest, therefore, is different from simple interest.<\/p>\n\n\n\n

Simple interest<\/strong>         You deposit \u20ac1,000 in Year 1.  The interest rate is 2.5%, and interest earned is \u20ac25.<\/p>\n\n\n\n

Compound Interest<\/strong> As above. But you re-invest the principal invested (\u20ac1,000) and the interest earned (\u20ac25).  You keep re-investing the principal earned and the interest accrued for 25 years.  At the end of the 25 years, the interest will increase from \u20ac25 in Y1 to \u20ac45.22 in Y25. Your initial investment at the end of the 25th year increases from \u20ac1,000 to \u20ac1,853.  The interest accrued on your investment is \u20ac853.<\/p>\n\n\n\n

The Chart shows you how the calculator looks.  The following example is used.  At the age of 25 years you decide that you will invest \u20ac1,000 every year for 40 years \u2013 up to when you reach the age of 65 years and plan to retire.<\/p>\n\n\n\n

The interest accrued during this 40 year period is shown in green<\/strong> in the Chart below.  The annual savings and interest accrued is shown in the Chart as the green and blue<\/strong> components respectively.<\/p>\n\n\n\n

Over a period of 40 years you will have saved \u20ac40,000 and accrued \u20ac29,087 in interests \u2013 resulting in a total of \u20ac69,087.\u00a0 The interests accrued are 42% of your total investment.\u00a0 The calculator also provides you with a Table showing how the compounding is accrued.\u00a0 The table provides the compound calculations for up to 50 years \u2013 to show you, and hence emphasise, the powerful impact that compound interest and time have on your investments.<\/p>\n\n\n\n

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(Download the \u0120EMMA calculator by clicking here) The compound interest principle is one of the most important principles in money management.  Compound interest and time are your most effective strategy […]<\/p>\n","protected":false},"author":10,"featured_media":4919,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","format":"standard","meta":{"_mi_skip_tracking":false,"spay_email":""},"issuem_issue":[228],"issuem_issue_categories":[222],"issuem_issue_tags":[],"translation":{"provider":"WPGlobus","version":"2.8.8","language":"en","enabled_languages":["mt","en"],"languages":{"mt":{"title":true,"content":true,"excerpt":false},"en":{"title":true,"content":true,"excerpt":false}}},"_links":{"self":[{"href":"http:\/\/weekly.uhm.org.mt\/en\/wp-json\/wp\/v2\/article\/4918"}],"collection":[{"href":"http:\/\/weekly.uhm.org.mt\/en\/wp-json\/wp\/v2\/article"}],"about":[{"href":"http:\/\/weekly.uhm.org.mt\/en\/wp-json\/wp\/v2\/types\/article"}],"author":[{"embeddable":true,"href":"http:\/\/weekly.uhm.org.mt\/en\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"http:\/\/weekly.uhm.org.mt\/en\/wp-json\/wp\/v2\/comments?post=4918"}],"version-history":[{"count":2,"href":"http:\/\/weekly.uhm.org.mt\/en\/wp-json\/wp\/v2\/article\/4918\/revisions"}],"predecessor-version":[{"id":4923,"href":"http:\/\/weekly.uhm.org.mt\/en\/wp-json\/wp\/v2\/article\/4918\/revisions\/4923"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/weekly.uhm.org.mt\/en\/wp-json\/wp\/v2\/media\/4919"}],"wp:attachment":[{"href":"http:\/\/weekly.uhm.org.mt\/en\/wp-json\/wp\/v2\/media?parent=4918"}],"wp:term":[{"taxonomy":"issuem_issue","embeddable":true,"href":"http:\/\/weekly.uhm.org.mt\/en\/wp-json\/wp\/v2\/issuem_issue?post=4918"},{"taxonomy":"issuem_issue_categories","embeddable":true,"href":"http:\/\/weekly.uhm.org.mt\/en\/wp-json\/wp\/v2\/issuem_issue_categories?post=4918"},{"taxonomy":"issuem_issue_tags","embeddable":true,"href":"http:\/\/weekly.uhm.org.mt\/en\/wp-json\/wp\/v2\/issuem_issue_tags?post=4918"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}