In order to invest your own money sensibly and profitably, it is advisable to familiarize yourself with some of the basic investment and financial terms. Interest generally plays a major role, as it is the index of how much money that has been invested in fixed-term deposit accounts or federal securities, for example, increases.
But especially when investing over a longer period of time - 24 - 60 months are common - another factor comes to the fore: compound interest. The following explains what compound interest actually is, how it comes about and how it can be used.
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