compoundierung (mischung)

listen to the pronunciation of compoundierung (mischung)
Almanca - İngilizce
compounding
Interest, dividends or capital gains accrued on both an original investment and its reinvested earnings When earnings are reinvested, you buy additional shares, which, in turn purchase even more shares
the act of combining things to form a new whole
When interest is earned on past interest this is called compounding For instance, if there is 5% on $100 for a year, then the next year the interest will be not only on the $100 but on the 5 dollars of interest earned
Financial advisers love to talk about the magic of compounding What magic? If your investments make 10% a year for five years, you earn not 50% but 61 1% Here's the reason: As time goes on, you make money not only on your original investment but also on your accumulated gains from earlier years See "The Power of Compounding " BACK TO TOP
All going well, this year you will earn a positive return on your investment Next year, all going well, you will earn a return on your initial investment plus a return on your year one returns When your returns are reinvested and then provide you more returns in subsequent years, you are benefiting from compounding Compounding occurs if you reinvest any returns, whether the returns are interest income, bond income or dividends from stocks or mutual funds Thanks to compounding, your investment may grow quickly
The growth of an investment that comes from earnings on both the original principal amount invested and the reinvested income and capital gains
Compounding refers to the reinvestment of returns, whether the returns are interest income, bond income or dividends from stocks or mutual funds
The process by which the value of your investment increases This is based not only on the money that you originally invested, but also on gains that may have been made in prior years
When an investment generates earnings on reinvested earnings
Interest paid on interest, resulting in a geometric rate of increase on the initial principal For example, a $100 investment that earns 5% generates $5 per year With compounding, it would generate $5 the first year, making a new basis of $105; then $5 25 the next year, for a basis of $110 25; $5 51 the next year; and so on In a mutual fund, reinvesting dividends and capital gains takes advantage of the power of compounding
The effect that interest has on a sum of money when the interest rate is applied to both the initial sum invested as well as the interest that has already been received on that sum For example, if $100 is invested for two years at a 5% interest rate, the investor will receive $5 the first year and $5 25 the second year This is because during the second year the interest rate is applied to the initial investment ($100) as well as the interest received from the first year ($5) Because of compounding, each interest payment is greater than the one prior to it; therefore the rate at which an investment grows increases over time (assuming compounding of interest and a fixed interest rate)
When you put money in the bank, it earns interest When that interest earns interest, the result is a "compound" interest In your retirement plan account, if income from bonds or dividends from stocks or mutual funds are reinvested into your account, their earnings compound as well Compounding can help your balance increase faster
The arithmetic process of finding the final value of an investment or series of investments when compound interest is applied That is, interest is earned on the interest as well as on the initial principal
Earnings on an investment's gains, which, over time, can produce significant growth in the value of an investment For example, if your investments earn 10% a year for five years, you earn 61 1%, not 50% That's because, as time goes on, you make money not only on your original investment, but also on your accumulated gains from previous years
Process by which income is earned on income that has been previously earned The end value of the investment includes both the original amount invested and the reinvested income
Earning interest on principal saved and on previously earned interest
– The process by which income is earned on income that has previously been earned The end value of the investment includes both the original amount invested and the reinvested income
When interest is applied to the initial amount of money invested and any interest earned previously on that initial amount For an example, if you invest $50 a year for two years at 5% interest rate, you will receive $2 50 the first year and $2 63 the second year
When interest is earned on both the principal amount and any interest already earned Because of compound interest, money grows much faster if the income from an investment is left in the account
Interest earned on interest previously earned and reinvested For example, if a security paid a fixed interest rate of 10% annually and an investor invested $500, by the end of the first year the investor would have earned $50 in interest If that interest was reinvested, the investor would enter the second year with $550 invested At the end of the second year, the investor would have earned $55 in interest -- earning an extra $5 in interest thanks to the reinvestment of the first year's interest