3 ms·

Sorry for the nit, but it's compounding improvement, not additive. Its 25% after 3 years and 45% after 5

• adastra22 1y ago
  That’s what he’s saying.
  • rcbdev 1y ago
    No. He said that the 7% 'add up', when the proper term would be 'compound'.
    • adastra22 1y ago
      You are both right. What is compounding? It is when you add the gains, year by year.
      • yxhuvud 1y ago
        The gains are multiplied though, no?
        • adastra22 1y ago
          In the vocabulary of finance you don't multiply in gains, you add them. It probably historically derives from dividends being added. At the transactional level you never actually multiply money, after all (unless you're a bank).
          • TheFuzzball 1y ago
            What is multiplication if not adding over time?
          • paulsutter 1y ago
            Everyone is right! It’s a multiply-accumulate (accumulate of course a synonym for add)
        • deleted 1y ago
          [deleted]