How to multiply your money by 4 thanks to compound interest

According to Wikipedia, compound interest is a system that capitalizes on one's own interests, so that the amount paid as interest increases month by month, since the basis for calculating interest increases each time the respective interests are liquidated.

According to Albert Einstein, compound interest is the most powerful force in the Universe.

Although I am almost certain that this phrase was never uttered by the famous scientist, it is true that compound interest is an undoubtedly useful tool for our finances.

In plain language, compound interest allows you to optimize your profit by reinvesting the dividends earned with initial capital.
It's the easiest way to multiply your profits.

And since the best example is with numbers, I am attaching this table where you can see the difference between the benefit using compound interest and the benefit without it, investing in Reental for 10 years.

For you to take this into account, we have estimated an annual interest of 11% paid monthly thanks to the rental of the property, and a 10% capital gain on the sale of the property after 24 months.

The operation is based on concatenating investments, that is, reinvesting the dividends you receive month by month and after 24 months, once you receive dividends from the sale and initial capital, you reinvest it in another Reental property, and so on 5 times up to 10 years.

Here's the comparison:

As you can see in this example, investing 10,000€ in 10 years you generate 35,993€ making use of compound interest and 15,541€ without it. More than €20,000 difference!! This shows the potential of compound interest to passively generate wealth for you.

If you want to play with numbers, in this Link you can edit the cells in yellow: initial capital, and interest, both derived from rent and sale, and the total profit will be automatically calculated month by month and up to 120 months.

I hope it will help you.

And you know if you want to get a return on your money, join the Reental community!!