Tag Archives: financial calculation

Compound Interest

Albert Einstein once said “the most powerful force in the universe is compound interest”. Simply put, it is earning interest on not just the principle amount but also on the accumulated interest. For example, with simple interest of 10% per annum, $100 would grow to: Year 1: $110 Year 2: $120 Year 3: $130 Whereas… Read More »

Mathematics of Financial Planning

Financial Planning involves the following calculations: A sum of the assets as well as liabilities of the client. The difference is the net worth of the client. A sum of the income less expenses of the client on an annual basis. This figure gives us the potential savings the client can make. Time value of… Read More »