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The Power Of Compound Interest & Choosing Cubdefi

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Cubdefi and it’s auto compounding feature can never be over emphasized, if you know the power of compound interest you understand where am coming from with cubdefi promotion.

Compound interest is a very good way to increase your wealth, those little interest that you earn from your investment, when invested, give you more interest. You can also refer to it as interest from interest, you can also call them little interest babies. If you want to know the true power of compound interest watch out for this post. With simple interest, the rate is fixed, meaning that you don’t get paid for the interest acquired from the interest of your capital.

It’s boring to be earning interest from your capital investment, raise the bar a little and earn interest from your interest. Simple interest is only considered to be better when you are taking loan, it could be house loan, car loan or just any other loan. This is because you only pay interest of the capital, but taking a loan that has compound interest on it can be considered a bad idea because it will put you into more debt.

Let’s use cubdefi

Aside the fact that the interest rate is high, it’s also amazing that it’s auto compounding, let’s do a little maths so you can see the power of compound interest. Let’s use the cake kingdom vault rate which is 73.92%. We are going to be looking at simple interest and compound interest of the same interest rate but different interest type.

If we were both given $100 to invest for 3 years and I choose to invest mine on cubdefi with the compounding interest and you decide to invest yours on some other investment platform that gives only simple interest at the same 73.92% interest rate , we are definitely not going to come back with the same amount of money.

Crypto volatility aside.

With Simple interest 73.92% of $100 for 3 years will give me an interest of $221.76. Using the Simple interest formulae that’s
Simple Interest(SI) = P X R X T Where P= Principal(Capital) $100 R= Rate (73.92/100) 0.7392 T= 3

If you are using a simple interest formula you will have something like this:

I = $100 X 0.7392 X 3
$221.76 At the end of 3 years you have successfully made $221.76 interest on your $100 investment if you add the interest and the profit you will have $321.76 in total.

But with compound interest it’s way different because your interest from your first year will be added to your capital to give you a compound interest in your second year. In your second year, you will be having interest from your capital and interest from your first year’s interest.

Let me show you mathematically

First year 100 X (73.92/100) X 1= $73.92 First year total = $100 + $73.92 = $173.92

Second year $173.92 X (73.92/100) X 1= $128.561 Second year total = $173.92 + $128.561 = $302.48

Third Year $302.48 X (73.92/100) X 1= $223.593 Third year total = $302.48 + $223.593 = $526.07

At the end of 3 years you have a total of $321.76 using a simple interest investment, while I have a total of $526.07 using compound interest. I’m more than $200 richer than you because I used a compound interest investment.

Using cubdefi you don’t have to do all these maths, the system is designed to auto compound your investment to ease off these stress of calculating all these. All you have to do is stake your token in the kingdom vault and watch your tokens increase in quantity.

If you have not realized the power of compound interest, you are welcome. I hope you learnt something from my post today

Posted Using LeoFinance Beta