Example Simulations

Good Example Results

Principal: $10,000

Rate: 5%

Time: 10 years

Compounds Per Year: 4

Total Amount: $

Interest Earned: $

This example shows a positive rate of return on investment.

Bad Example Results

Principal: $10,000

Rate: -3%

Time: 10 years

Compounds Per Year: 4

Total Amount: $

Interest Earned: $

This example illustrates a negative interest rate, leading to a decrease in total value.

Summary of Good Practices

When investing, it's crucial to consider the following:

Choose investments with a positive rate of return.
Understand the effect of compounding over time.
Diversify your investment portfolio.
Regularly review your investments.