This document discusses the power of compound interest over time. It provides two examples: 1) Mr. A needs 30 years to save 1 crore rupees investing monthly at 10% interest, while Mr. B with the same goal and interest needs 25 years and must save Rs. 3000 more per month. 2) Savings of Rs. 5000 per month at 12% interest grows to Rs. 46 lakhs in 20 years, Rs. 85 lakhs in 25 years, and Rs. 1.5 crore in 30 years, demonstrating the exponential growth from compounding interest over longer periods. The conclusion recommends starting to invest as early as possible for the greatest benefit of compounding interest over

1. Power of Compounding

2.  Compound interest is the interest given on the
principal and previous interest which was accrued
earlier on the principal
 Compounding can be ranges for period from
quarterly to yearly
Introduction

3.  Mr. A - Rs 1 crore is to be accumulated after 30 years.
 Mr. B has only 25 years’ time to accumulate Rs 1 Crore
 Annual interest rate -10%
 Mr. A has to save Rs. 4423 per month whereas Mr. B has to save Rs.
7537 per month.
 Mr. B has to save Rs. 3000 per month more than Mr. A to achieve the
same goal because he has set the target 5 years later.
Example-1

4. Mr. A Mr. B
Goal to be
Achieved
Rs 1 Crore Rs 1 Crore
Time to achieve
30 years 25 years
Interest rate
10% 10%
Amount to save
per month
Rs 4423 Rs 7537
Example-1

5.  Savings of Rs 5000/month
 Annual interest rate – 12%
 After 20 years – Rs 46 Lakhs
 After 25 years – Rs 85 Lakhs
 After 30 years – Rs 1.5 Crore
Example-2

6. 0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
*Duration: 25 years *Wealth: Rs 85,00,000
*Duration: 20 years *Wealth: Rs 46,00,000
*Duration: 30 years *Wealth: Rs 1,50,00,000
Example-2Wealth(Rs)
Duration (years)

7.  Start investing early – preferably from first income
 There is no tomorrow for investment. Start today.
 Try to be invested as long as you because final years
are crucial to accumulate wealth significantly.
Conclusion