Returns may fluctuate with market conditions, but long-term earnings tend to stabilize through intelligent strategies.
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🔄Principle of Compound Interest
Compound interest means that investment earnings are reinvested into the principal, and the next period’s earnings are calculated based on the new principal, achieving “interest on interest.”
Formula:
A=P×(1+r)nA = P \times (1 + r)^nA=P×(1+r)n
Where:
A: Total principal + interest
P: Initial investment
r: Daily return rate (in decimal, e.g., 1.5% = 0.015)
n: Number of compounding periods (days)
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📈 Compound Interest Example (Daily Return Rate 2.5%)
Assume an investment of $1000 with a daily return rate of 2.5%, compounded for 30 days: