## The Magic of Multiplication

Whenever you Invest some amount let say,** $100 in any instrument for example a Debt Fund, Giving a Return of 10% p.a.**

You Get **$10 as Interest** for the First Year

But what if you do not Take our this Interest….**You Investment in second year will be $100+$10** which you got as Interest of First Year, and Next Year you will also get Interest on this Extra $10 and **Total Interest for the Year will be 10% on $110 i.e. $11**

This will get added to your Investment for Next Year and you **Investment will be now $100+$10+$11 i.e. $121** and now you will Receive a** 10% on this i.e. $12.10 so on..**. that’s how you Interest get Interest but This might seems very little Difference at this Point…**Think about Leaving it for a Period of say 20 Years…**

and Read the Example at the end where you will be **Shocked by the Difference in the Amount you can get**

## How can i Achieve **$10 Million**

**$10 Million**

I can Invest **$32500** Per Month for 10 Years

I can invest **$5200** Per Month for 20 Years

I can invest **$2200** Per Month for 25 Years

Or I can Invest **$1000** Per Month for 30 Years

**NOTE: – I have assumed an annualized return of 18% for arriving at the above numbers. **

## Or in a One Time Investment...

**$2 Million for investment tenure of 10 Years.**

**$0.365 Million for 20 years**

**$0.16 Million for 25 years**

**$0.07 Million for 30 years**

## Let's Understand a Fact

*Suppose A & B invest $5000 per month, earning interest @ 18% p.a. on a monthly compounding basis .A starts at the age of 25 years & B starts at the age of 35 years, Both of them invest for 5 years (5000 * 60 Months = 0.3 Million ) & hold their investment till 60 years of age.*

*A’s investment would have appreciated to Approx. $70 Million Whereas*

*B’s investment would have grown to only $10 Million Approx.*

*Thus, A’s investment would have almost become 7 times more by just starting investing earlier then B, though the amount saved by them is the same*