Compounding

Understanding how investments grow is crucial for making informed decisions. The Compound Annual Growth Rate (CAGR) is a key measure that calculates the average return on an investment over time, assuming the profits are reinvested.

When it comes to building wealth, the power of compounding is one of the most powerful forces at your disposal. To illustrate just how impactful it can be, let’s consider a simple, yet eye-opening scenario.