Welcome to Svtuition

Free Online School with 5000+ contents as study material which can watch, read and learn anyone, anywhere.

Start your studies


Science Classes

Basic Sciences

Computer Science


Personal Finance 

Money Making


Finance Data Analysis

Corporate Finance 

Finance Services

Public Finance


/fa-fire/ Latest Contents$type=three$cate=0$va=0$show=home$c=3$m=0$rm=0$s=0


"Thank you sir you did a good job for students through Svtuition. I have learn many things"

S.U. Rahman

"First time I have so happy to find Svtuition I spent a lot of time searching for my problem now I have finally understood the concept at Svtuition"


"All doubts clear sir.Svtuition is a very good teacher.thanks"

Sathyam Guha

"Sir I am learning through your website and I am really grateful to you for taking out your time to teach us in Svtuition."


"Svtuition is very usefull to me ....today i have learn great things at Svtuition....very usefull tips provide for me.....today i have to start my own learning experience through this website.......Thanks bro....God Bless U. "

Jeevan Kumar

"Nice👌 and informative Site, Keep doing the good work "


/fa-fire/ Science$type=three$cate=0$va=0$show=home$c=6$m=0$rm=0$s=0


Learn Financial Freedom Step by Step

5 Benefits of Compounding

 Every one wants to become rich. For this, they uses hard work options. They do hard work in jobs whether self employed job or doing the job any other place. But their desires consume their all money. They becomes only poor. Then start to do more hard work by doing extra job or part time business by investing more time. Which makes their health so bad. They utilize the time of their relax body in doing hard work. With this, they pay more on health than extra earning from investing extra time. 

it means, it is not best way. Best way is to take the benefits from Compounding which if you learn and use in your business or work, you will rich in small time and without using extra time efforts for becoming rich. Compounding means using the compound interest for increasing your wealth fastly instead using of simple interest. Compound interest is interest on the value of interest. 

Now, come to learn 5 benefits of Compounding which will make you rich. 

1. If you have very small amount and if you are getting high return %  and reinvest same rate for Few Years, it will grow unlimited and more than  you imagination

See following image 

In above image, Mr. A invest Rs. 100 every year with simple interest for 10 years and Mr. B invest for 10 years with compound interest

After 10 years A will get only Rs. 11000 and Mr. B will get Rs. 102400

Now, both have less amount just Rs. 100 and both are getting rate of return 100% for 10 years but Mr. A gets only 11000 in the end of 10 year and Mr. B gets Rs. 102,400 which is about 1000 times of his initial investment and 10 times from total investment. 

What happened. Mr. B did not consume interest and make the interest as principal for next year investment. After this, his interest grow double and with just 100 investment, he got Rs. 102,400

Mr. A invest and gets simple interest at the end of year and he did not re-invest for getting compounding benefits. So, get only Rs. 11000

Now see following image how you jump richness with compounding power

2. If you have started to grow investment and if you are getting high return %  and reinvest same rate for Few Years, it will grow with growth of your investment

Yes, this point is great to understand.

in compounding

End amount will be

A = P ( 1+r/100)^t

This is simple formula

A = end amount including compound interest 

P = Principal amount or initial amount

r= rate of interest

t = time

If you grow your P, growth of A will same time. 

Now suppose you invest only Rs. 10000 per year with same return 100 %  per year for 10 years. 

At the end of 10 years, you will get Rs. 10240000 or Rs. 1 Crore and 2 Lakh and 40,000 with total investment of Rs. 1,00,000

It means, you know understand that you never make small your interest and consume it, you reinvest in same business where giving you high return upto lakhs and it will convert in crores of Rs.

You grow  two zeros in your principal and your total amount will grow with same two zero but you understand, you convert your final fund from lack to crores.

3. If you have very small amount loan and if you are paying small compound interest and within Few years, it will make you Bankrupt

This is also 2nd benefit of compounding which can help to repay fast loan and protect your wealth because if you have taken small loan and paying small compound interest rate, it will become big amount which you will pay in total amount. With this, you understand and promise yourself never take loan.

For example, you have taken Rs. 100 loan per year with the promise to pay interest compound 8.3% pm ( never become fool, it is equal to 100% of per year). Now, this total loan amount including your principal you will pay is again Rs. 102400 and principal loan is just Rs. 1000 but compound interest is 

102400 - 1000 = 101400

It means 100 times more, you have paid interest. 

So, never take loan

whether it is personal loan or credit car loan or pay later loan from online companies

4. Money will Start Work for You and Earn For You

This is great benefit of compounding. If you understand day one compound interest and its effect on your final amount, you can fastly free from job and self employed rat race. 

How will money will start work for you and earn fast for you with compounding, we have to learn

A = P ( 1+r/100)^t

you understood it simply.

1st factor

For investment, you need the principal. For getting principal, you must need

1. To do any part time job or full time job. So, you will get salary. For good job, you need higher education

2. To do any self employed business like CA, Doctor or Advocate or singer. For this, you also must learned specific skills.

3. Doing Business and getting earning from it. Yes, again updating knowledge

It is possible if you learn and invest monthly or yearly as principal amount

2nd factor : Investment time

Second is commitment not to withdraw principal and interest for 10 to 15 years. 

3rd Factor : Rate of Return

Third is rate of return. It needs business and financial knowledge. Yes, there are lots of business which gives you double in 5 years. Tripple in 5 years and 5 times in 5 years means every year, your amount will double. 

All 3 in your control and your growth money will unlimited. Now, you can pay your employees. You can do your business with your money and money will start work with you and earn for you. Before this, about 3 factors, you have to focus. 

5. Compounding Transform Your Life 

When you learn the secrete of the power of compounding your life transform. Following changes will come.

1. You will start to control your expenses 

You never spend more than your active earning. You will save every month because you know that with compound interest, next 10 years, you need to do job and your invested compound interest per month will equal to year 1 year salary. 

2. You Never Withdraw your interest upto become 100000 growth of your interest, you will reinvest your interest. If you withdraw every year your earned interest, you limit your life with simple interest instead compound interest. 

3. You make the simple life style. There will not ac but cooler in your office. There is no car but only bike or cycle in your hand. You keep only normal clothes. But it only for 10 to 15 years. After this, you got everything what you want in your life. 

4. With its understanding and using, you will become all good habits. For increasing your investment, you learn daily new skills and increase your active earning ability. You protect your business losses for protecting your future earning. 


On this page
















Tara Chand's Contents $type=blogging$show=http://www.svtuition.com/p/tara-chand.html$c=20

Ashok Kumar's Contents$type=blogging$show=https://www.svtuition.com/p/ashok-kumar.html$hide=author


11th Class Maths,2,11th Class Physics,6,5th Class Maths,1,6th Class Science,9,Abhiraj Singh,1,Accountant,2,Accounting,14,Accounting Concepts,1,Accounting Course,4,Accounting Education,18,accounting equation,3,Accounting Formats,2,Accounting Scandals,1,Accounting Solutions,37,Accounting Videos in English,1,Accounting Videos in Hindi,9,Administration Skills,2,Air,7,Algebra,11,Amazon,7,Answer the Questions and Become Master,23,App,6,Applied sciences,3,Aptitude,1,Artificial Intelligence,2,Ashok Kumar,5,B.Com Maths,9,Balance Sheet,8,bank,59,Banking,37,Banking Dictionary,1,Become Rich in India,25,bengali,4,Best Teachers Rewards,1,BHIM,3,Biology,4,Black Money,1,Bodybuilding Education,5,Bond,4,Budget,2,Business,11,Business Dictionary,3,Business Education,10,Business Environment,2,Business Mathematics,8,Business Skills,1,Business Solutions,1,C++,1,CA,1,Calculus,1,cameras,2,Canara Bank,3,Canva,1,capital,1,car,1,Car Driving Course,57,Care of pet,1,Career Solutions,12,carpentry,14,cartoon,1,Cattle Domestication Skill,3,Cattle Domestication Skill,1,CDSL,4,Charity,1,chemistry,3,circle,2,Class 1 English,1,class 1 Maths,1,Class 10 Maths,11,Class 2 Maths,1,Class 5 Maths,2,Class 6 Maths,1,Class 7 Maths,1,Class 8 Maths,17,Class 9 Maths,1,Commerce,4,commodity market,1,Communication,5,Computer,28,Computer Basics,30,Computer Data Storage,1,Computer Dictionary,2,Computer Hardware,11,Computer Networking,12,computer science,5,Computer Software,17,Computer Solutions,1,Construction Skills,25,cooking education,25,Cooking Skills by Ashwani,57,Corporate Accounting,17,Corporate Law,5,corporate Scandals,1,cost,2,cost accounting,13,Credit Card,7,CSE,1,css,11,Currency,1,Current Affairs,2,curtain,1,Dailymotion,1,Debit Card,1,DEMAT Account,13,depreciation,2,determinant,3,Domain Name System,4,Dr. Mathura Das,5,Dr. MD Swatanter,1,drawing,1,Dreams,19,Driving Education,1,e-accounting,1,Earn from eBooks,13,Earn Money,28,Earning,2,eBooks,9,Economics Education,33,Education,14,Education Solutions,12,Electric Cycle,4,Electric Scooter,1,Electrical engineering‎,28,Electrical Skills,19,Electrical Skills by Ashwani Kumar,12,Electronics,4,Email,2,Energy (physics),10,Engineering,2,English,23,Examination,3,Facebook,2,Failure,4,Finance,114,Finance Education,45,Finance Solutions,9,financial,3,Financial Accounting,28,Financial Service Providers,2,FIR,7,Focus on Study,8,Football,1,Forex,2,Forex Trading Skills,2,Free Maths Tools,1,Fundraiser,1,Gambling,10,Gambling Addiction,4,Gardening Skills,17,Gas,1,Gaupalan,5,Geometry,3,gold,5,Goldsmith,35,Google,2,Google Admin,3,Google AdMob,2,Google Adsense,2,Google Blogger,7,Google Meet,1,Google Pay,4,Google play Console,6,Google Play Store,7,Gravity,4,GST,2,Guest Writers,3,Gurpreet Singh,14,Habits,4,HDFC,1,HDFC Bank,1,Health Education,16,Heat,2,Help,3,Hindi Language,3,History,2,Home Building,10,Home Maintenance amp; Repair,5,Home Remedies Course,75,HR Management,11,HTML,9,Income Tax,1,Index Number,3,India,15,India Post Payments Bank,7,Indian Festivals,4,Indian Language,1,Influencer marketing,1,Infolinks,5,Inspiration,26,inspire,2,Instagram,2,insurance,3,intelligence,1,Interest,6,internal audit,2,International Finance,1,Internet,43,Internet Forum,1,Investment,32,Javascript,3,Jobs amp; Careers,5,Journal,1,journal entries,5,journal entry,3,Kenya,1,Knot Skills,1,Laptop Basics,7,Law Education,26,Law Solutions,2,Learning,8,Lecture,2,Legal Document,2,Legal Education,15,Letter Formats,2,LIC,1,Light,7,Limit,2,Linear algebra,5,Linear Programming,12,Loan,3,magnet,8,Malaysia,2,Management Accounting,17,Management Education,17,Management Solutions,1,Manish Khurana,4,Marketing Education,7,Mathematics Education,134,Maths,1,Maths by Ashwani Kumar,35,matrices,43,MCAT,1,Mechanical Skills,3,Medical and Surgery Education,1,Memories,2,Mobile,19,Mobile Software,17,motivation,41,Motorcycle Mechanic Skills,8,MS Excel,12,Music Skills,3,Mutual Funds,5,Nepal,1,Nepali Language,1,Net Banking,1,Network addressing,2,Nigeria,1,Nishant Arya,11,Om Parkash,11,Online,1,Online Teachers Support,2,organisation,1,Other,15,Pakistan,1,Payment Service Providers,15,Payoneer,1,paypal,12,paytm,10,PayU,2,PERSONAL DEVELOPMENT,1,Personal Finance,13,Philippines,2,Photography,1,Photoshop Software,5,PHP,1,physics,60,Picture,1,Plumbing Education,9,PNB,4,Political Science,3,Polynomial,9,positive thinking,1,Post Office,6,Probability,9,Prof. Ashwani Kumar,3,Profiles,1,Profit,1,Programming Language,13,Property Dealing Skills by Surinder Singh,5,provision,1,Publishing,1,Punjabi Language,4,Quiz,3,Railway Exam,2,Railway Technical Exam,2,Rajesh Kumar,34,RBI,3,real estate,10,Reasoning,2,rectification,1,rectification of errors,1,Relationships amp; Family,3,Religious Studies,7,Result,2,Sahas,3,Sanskrit,10,Saudi Arabia,1,Saving,14,SBI,11,School Accounting,2,science,86,Science Education,63,Science Quize,1,Science Tests,7,Secrets of Failure,2,Security,2,Self Identity,1,Self-Learning,8,Share Market,49,Share Market Dictionary,8,Shiv Kumar Shabdra,1,Silversmith,4,Singing Skills,20,Singing Skills by Surinder Singh,7,Skating,1,Slideshow,1,Social Media,3,social science,5,Solution,5,Sound,5,Space Science,6,Special Days,1,Spiritual Education,11,Sports,7,Start Own Business,12,Statistics,12,Statistics Education,4,stock,3,Stock Market,4,Stories,2,Story,1,Students,5,Success,16,Surinder Singh,18,svtuition,4,Tablet Education,7,Tailoring Skills,4,Tally,71,Tally Solutions,9,Tally.ERP 9,92,TallyPrime,9,Tara Chand,14,tax,9,Tax Solutions,9,teaching,7,Teaching by Chanakya,2,Teaching Education,18,Teaching Skills,1,Teaching Stories,1,Tech by Ashwani,8,Tech Simplify,20,technical education,3,Telecommunication,1,Test,9,Testimonials,3,Time Management,2,Time series,3,Travel,10,Trigonometry,7,tuition,4,TV Shows,4,UK,2,USA,1,variance analysis,3,VAT,1,vector,22,Video,31,Video Creation Skills,1,Video Editing,4,Video on Demand,1,VideoPad Video Editor,1,videos,180,Vocational Education,19,Volume,1,Water,8,Wealth,35,Weather,3,Web design,5,Web Hosting,7,Web Software,3,website,23,Website earning,1,Welding Skills,2,WhatsApp,8,Wife,1,Wifi,9,Window Movie Maker,1,Wordpress,6,working capital,1,Writing,1,written Communication,2,Yono App,2,Yono Cash,1,You can Become Rich Also,5,Youth,9,youtube,21,YouTube Studio skills,1,YouTube Tutorials,7,zigopay,1,
Svtuition: 5 Benefits of Compounding
5 Benefits of Compounding
Loaded All Posts Not found any posts VIEW ALL Reply Cancel reply Delete By Home PAGES Contents View All RELATED CONTENTS FOR YOUR LEARNING Topic ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy