Advertisement
HomeCollectionsCompound Interest
IN THE NEWS

Compound Interest

FEATURED ARTICLES
BUSINESS
By CAROLYN BIGDA | May 23, 2004
I RECENTLY heard the woeful story of a young man who spent $1 million on a new Trans Am. The sticker price of the car was actually $20,000, which he funded by cashing out his 401(k) when he switched jobs a few years ago. But as a financial planner pointed out, had he reinvested that money in a tax-deferred account until he retired, it likely would have grown to $1 million. This young man strayed from the path of millionaire status because he failed to consider the power of compounding.
ARTICLES BY DATE
SPORTS
Peter Schmuck | October 9, 2012
The Orioles have arrived in the Big Apple and are getting ready to resume their playoff run Wednesday night in the glamorous new Yankee Stadium against the most expensive baseball team on earth. If it were about all that glitters or is made of gold, they would be in serious trouble in Game 3 of the Division Series, but the surprising O's might have developed the perfect antidote to the famous "Yankee mystique" that is always a hot topic when the leaves start to turn and the games really count.
Advertisement
BUSINESS
By Lorene Yue | October 31, 2004
Punch up: www.interest.com Why it clicks: The power of compound interest is easier to understand when the numbers are in front of you. The concept is simple - earning interest on interest that you've already accrued - but the impact can be tough to visualize. Most compounding-interest calculators will tell you how much your money will grow after a certain number of years. The calculator at Interest.com lets you add to the kitty and compute the final amount. Look on the mortgage calculator page under the deposit calculator heading.
BUSINESS
By Eileen Ambrose, The Baltimore Sun | November 27, 2011
John David Kromkowski learned about compound interest as a youngster with the help of a passbook savings account at the bank. "Every time you went in, they would calculate the interest for you and put it in the book," the 49-year-old Baltimore County lawyer recalls. "It made me feel like, 'I'm making money here.'" Now, Kromkowski wants his son to learn about the miracle of compounding — earning interest on interest. The problem: Savings accounts pay so little interest now that compounding is negligible.
BUSINESS
By Eileen Ambrose, The Baltimore Sun | November 27, 2011
John David Kromkowski learned about compound interest as a youngster with the help of a passbook savings account at the bank. "Every time you went in, they would calculate the interest for you and put it in the book," the 49-year-old Baltimore County lawyer recalls. "It made me feel like, 'I'm making money here.'" Now, Kromkowski wants his son to learn about the miracle of compounding — earning interest on interest. The problem: Savings accounts pay so little interest now that compounding is negligible.
BUSINESS
By Bloomberg Business News | December 1, 1992
PRINCETON, N.J. -- Municipal bond issuers announced yesterday the early redemption of four issues totaling more than $4.1 million.0 The issues being called are: * Pasadena, Calif., Series 1980, electric works revenue bonds maturing July 1, 2010. All of the above outstanding bonds called at 102 1/2 on Jan. 1, 1993.* Lake County Housing Finance Corporation, Ill., Series 1982, mortgage revenue bonds. Current interest bonds maturing July 1, 1993, Jan. 1 and July 1, 1994 through Jan. 1 and July 1, 1996.
BUSINESS
By JULIUS WESTHEIMER | February 28, 2001
March is historically an "up" month in Wall Street, with the Standard & Poor's 500 stock index gaining an average 1.2 percent during the past 50 years. "More junk [high-yield, low quality] bonds were issued in January 2001, than in all of the fourth quarter of 2000. Last year, Moody's downgraded a record 470 corporations' bonds. Junk bond defaults rose 6 percent and are expected to increase to 10 percent this year." (Income Digest) MONEY MATTERS: "Far more money has been lost by investors trying to protect themselves from market downturns than by downturns themselves."
BUSINESS
By JULIUS WESTHEIMER | October 6, 1995
WHEN PEOPLE ASK, half-jokingly, "How can I double my money?" I explain the "Rule of 72."Simply stated, when you divide your compound interest (or growth) rate into 72, the result is the number of years in which money doubles.At 7.2 percent, for example, money doubles in 10 years. At 10 percent, only 7.2 years. At 8 percent, 9 years. At 6 percent, 12 years, and so on.MAKING IT WORK: In that context Forbes, Oct. 9, says, "The Rule of 72 proves the power of compound interest."Money manager Shelby Davis states, 'If you buy stocks showing 10 percent annual earnings growth, under 10 times earnings, and profits double in seven years, you're nearly guaranteed your stocks will double.
SPORTS
By Vito Stellino and Vito Stellino,Sun Staff Writer | September 13, 1994
Doug Williams, who retired from the Washington Redskins after the 1989 season and is now an assistant at Navy, will be finding a check in his Annapolis mailbox in the next few months for a 1987 NFL game.It didn't get lost in the mail all these years. Instead, it's just one final chapter left over from the players' bitter 1987 strike.Williams is one of 1,300 current and former NFL players who'll be paid for a game the owners wouldn't let them participate in the weekend of Oct. 18-19, 1987, even though they already had ended their 24-day strike.
NEWS
By R. Taggart Murphy | March 7, 1995
Tokyo -- IF THE REPUBLICANS sweep the 1996 elections, adding the White House to their control of Capitol Hill, their triumph may be very short-lived. For there will be no Democrats to blame when the day of reckoning for America's fiscal mess arrives in the late 1990s.Compound interest -- interest on money borrowed to pay interest on yesterday's debts -- will be the reason for the mess. The United States has been using it for two decades. But as you know if you have ever juggled credit cards to postpone going broke, the interest can run away from you.There are three components of the federal budget that really matter -- military spending, Medicare and interest on the national debt.
NEWS
May 23, 2011
John Fuller's letter ("How did Schaefer get so rich?" May 20) asks how the late Gov. William Donald Schaefer could have had $2.5 million after a life in public service. The answer lies in saving and the practical consequences of compound interest. Governor Schaefer had neither children nor an extravagant lifestyle. He could easily have saved 5 percent of his income, perhaps more, every year for 60 years. Even at a conservative average interest of 4 percent, the earliest of those savings would have multiplied over 10 times, those from 40 years ago almost five times, those from 20 years ago more than two times.
BUSINESS
By JAY HANCOCK | May 27, 2009
What advice do we give graduates for the worst economy most of us can remember? The same advice as for when times are flush. Lives are longer than business cycles. Start saving today, even if you have loans to pay off. Use some of your graduation checks if you don't have a job. One of the countless benefits of youth is the almost unimaginable horizon to let savings compound. Today's 21-year-olds can expect to live past 2065. Invest $50 a month between now and then, and you'll leave an estate of $283,000, if you earn 6 percent annually.
BUSINESS
By Gail MarksJarvis and Gail MarksJarvis,Your Money | June 15, 2008
Dads, this is supposed to be your day - a day to relax, to put aside jobs and soak up appreciation for all you've done for your families. But I have a job for you. It doesn't have to be done today, but it has to be done. If you are like most fathers, you've done a good job of feeding your family and providing other essentials, but you may have missed one: Everyone in your household - your wife and your children - needs to know how to handle finances so they thrive in the future. And, according to research, you are likely to be the best-equipped person in the household to get them onto the right course.
FEATURES
By CHRIS KALTENBACH and CHRIS KALTENBACH,SUN MOVIE CRITIC | March 24, 2006
Spike Lee grafts his unique sensibilities onto a pretty conventional bank heist plot with Inside Man. The results are mixed; some of Lee's cinematic tricks seem simply out of place. But look past the occasional slip, and what emerges is a slick, briskly paced tale of bank robbers who think they're at least half-again as smart as everybody else, and maybe are. Lee, working off a screenplay from first-timer Russell Gewirtz, certainly benefits from his continued good standing within Hollywood's acting community.
BUSINESS
By Janet Kidd Stewart | July 10, 2005
At the height of the 1999 stock market frenzy, when betting on initial offerings of Internet companies with no profits seemed a sure thing, plenty of people still put their money on another roll of the dice. A survey by the Consumer Federation of America found that 27 percent of respondents said their best chance of accumulating a half-million dollars or more during their lifetimes was a lottery or sweepstakes win. Fast forward to 2005, when market expectations are far humbler. The worldwide gaming industry has soared: Two-thirds of adult Americans in a Gallup poll this year said they had gambled in the previous 12 months, and U.S. lottery players spent $49 billion in 2004.
BUSINESS
By Lorene Yue | October 31, 2004
Punch up: www.interest.com Why it clicks: The power of compound interest is easier to understand when the numbers are in front of you. The concept is simple - earning interest on interest that you've already accrued - but the impact can be tough to visualize. Most compounding-interest calculators will tell you how much your money will grow after a certain number of years. The calculator at Interest.com lets you add to the kitty and compute the final amount. Look on the mortgage calculator page under the deposit calculator heading.
BUSINESS
By Gail MarksJarvis and Gail MarksJarvis,Your Money | June 15, 2008
Dads, this is supposed to be your day - a day to relax, to put aside jobs and soak up appreciation for all you've done for your families. But I have a job for you. It doesn't have to be done today, but it has to be done. If you are like most fathers, you've done a good job of feeding your family and providing other essentials, but you may have missed one: Everyone in your household - your wife and your children - needs to know how to handle finances so they thrive in the future. And, according to research, you are likely to be the best-equipped person in the household to get them onto the right course.
BUSINESS
By CAROLYN BIGDA | May 23, 2004
I RECENTLY heard the woeful story of a young man who spent $1 million on a new Trans Am. The sticker price of the car was actually $20,000, which he funded by cashing out his 401(k) when he switched jobs a few years ago. But as a financial planner pointed out, had he reinvested that money in a tax-deferred account until he retired, it likely would have grown to $1 million. This young man strayed from the path of millionaire status because he failed to consider the power of compounding.
BUSINESS
By JULIUS WESTHEIMER | February 28, 2001
March is historically an "up" month in Wall Street, with the Standard & Poor's 500 stock index gaining an average 1.2 percent during the past 50 years. "More junk [high-yield, low quality] bonds were issued in January 2001, than in all of the fourth quarter of 2000. Last year, Moody's downgraded a record 470 corporations' bonds. Junk bond defaults rose 6 percent and are expected to increase to 10 percent this year." (Income Digest) MONEY MATTERS: "Far more money has been lost by investors trying to protect themselves from market downturns than by downturns themselves."
Baltimore Sun Articles
|
|
|
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.