The joys of compounding don’t end there. For one thing, if you have a certain goal in mind (say, you plan to buy a house in 10 years and figure you’ll need $20,000 for the down payment), compounding lets you figure out how much you’ll need to set aside on a regular basis and what sort of return you’ll need to reach your goal. In the preceding example, if you’ve got 10 years to invest and assume that you can earn 10% a year (not an unreasonable assumption), then all you need to do is set aside about $96 a month to achieve your targeted down payment goal. (more…)

The concept theory of the how certificate deposit works is easy to understand for common people with or without knowledge in investments. Certificate deposit is investment instrument with fixed income and in time-based. It is released by a financial institution and pays your interest for a guaranteed rate over a given period. (more…)