3 ms·
No. He said that the 7% 'add up', when the proper term would be 'compound'.
by rcbdev 11mo ago
No. He said that the 7% 'add up', when the proper term would be 'compound'.
- adastra22 11mo agoYou are both right. What is compounding? It is when you add the gains, year by year.
- yxhuvud 11mo agoThe gains are multiplied though, no?
- adastra22 11mo agoIn 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 11mo agoWhat is multiplication if not adding over time?
- paulsutter 11mo agoEveryone is right! It’s a multiply-accumulate (accumulate of course a synonym for add)
- deleted 11mo ago[deleted]