Would you rather have P1 Million today or 1 centavo that doubles every day for a month?
If you were given a choice, what would you pick — P1 Million today or one centavo that doubles every day for the next 30 days? I’ll give you a second to think about it. Ready? There’s no wrong answer because either way you would end up being a millionaire. However, if you chose the…
Simple Interest vs. Compounding Interest
What’s the difference between simple interest and compounding interest? Say you invest Php10,000 today at a 10% interest rate. With simple interest, you will earn Php1,000 every year (10,000 x 10%) as long as your money is kept invested. And in 5 years, your money plus interest will total Php15,000. That’s because, with simple interest,…
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