You will be surprised to know that 8th wonder is hidden in our text books. YES ,same supposed to be boring text books.

Go to your study table and search for your financial mangement book which you might have dumped long ago in case you passed the exam.

Search for it ASAP , as it contain a superpower tool that can help you create huge wealth.

while reserching for new material to write I came across this litte wonder.

let me ask you simple question

I am includ­ing the following extraordinary study, by Norman Fosback.

Assume that investor B opens an A/c at age 19. For seven consecutive periods he puts Rs.2,000 into the A/c at an average growth rate of 10 percent (7 percent interest plus growth). After seven years, this guy makes no more contribu­tions-he’s finished.

A second investor, A, makes no contributions until age 26 (this is the age when investor B was finished making contributions). Then A continues to contribute Rs.2,000 every year until age 65 (at the same theoretical 10 percent rate).

So whose wealth is going to be higher after 65 years???

Simple guess Mr. A because he had contributed more than Mr. B

Even some of the top minds of financial community might wonder that actually it is Mr. B who stands to gain.

Lets see how and unlock the POWER OF COMPOUNDING.

Mr. B

value of annuity for Rs 2000 @10% for 7 years = Rs.20872.

Now this amount is kept invested till 65 years of age and becomes Rs. 944,641

value appreciated a whopping 66 times.

For Mr. A

value of annuity of Rs. 2000 till 65 years when he starts investing at the age of 26 years @ 10%. = Rs.973,704.

Appreciation in value 11 times.

So this is the Power of compounding. A great Investment idea. (a) safety; (b) an attractive return; and (c) a good chance of appreciat­ing

I am following it.

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