This post is part of Free Guide to Investing in HYIPs. Click here to read the previous article.
12) Be careful with the “compound interest”
Compound interest is the interest that is not paid but reinvested in order for accrued interest to bring profit itself. Hence is the title — “compound “. It is also known as “capitalized interest.”
Example. Initial capital – $ 100. Interest income – 10%. Term – 10 weeks. Here’s how it will look in the diagram:
Now you can clearly see the difference in the final results!
However, be extremely careful with the “compound interest” in the HYIP program. By choosing this strategy, your interest charges will not be paid periodically, as the HYIP will keep them until the final day of the investment plan. In this case, you have a much greater risk of losing money in this program, if it ends its work before the final date of the investment plan.
Do not forget: until the money is transferred to your e-Wallet, you have earned nothing in this HYIP.
You can reinvest all your interest or only its part. This will give you compound interest. If you choose 50/50, then the first half of the charges you will be paid, and the second — reinvested.
If you want to use the “compound interest” in HYIPs, wait for the moment when you get the first money invested in this program.
You invest $ 100 on the investment plan – 2% per day for 180 days. You will need 50 days to return the original invested capital (50 days X 2% – 100%). Therefore, in this case, start to use the power of compound interest only from the 51st day. For example, if you want to multiply 40%, then 60% of the daily interest will be paid every day (which you should immediately transfer to the account in order to have a real profit), while 40% will be reinvested to generate further income.
If a HYIP offers the opportunity to receive “compound interest”, an application will be available on its website that will allow you to calculate the difference in income from capitalized interest and without it.
To be continued. Watch out for updates in the blog!