Question 1

What's the difference between compound and simple interest?

Accepted Answer

Simple interest applies only to the principal. Compound interest applies to principal plus accumulated interest, causing exponential growth over time.

Question 2

Is 5% monthly return realistic?

Accepted Answer

Even professionals find 5% monthly extremely hard to sustain. 1-2% is a solid target; above 5% is more of a thought experiment.

Question 3

What is the Rule of 72?

Accepted Answer

72 ÷ interest rate ≈ periods to double your money. At 3% monthly, it takes about 24 months (72 ÷ 3) to double.

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Monthly Return

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