Compound Interest Useless Because Hyper Inflation ?
Compound interest is compound interest. Compound interest is a system of calculating interest rewards based on the principal capital plus the total interest that has been previously earned. This means that the amount of interest is calculated from the total money that has been added to the interest earned in the previous period.
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Compounding interest is an advantage for young investors because by doing it consistently, you will get interest that will always grow
Venezuela’s minimum wage has increased dramatically since 2018. If someone from Venezuela has been compounding interest as an investor since 2005 with an investment goal of 15 years with a consistent savings amount of 1800 bolívares per year
The amount of compounding interest generated over 10 years may be worth 32,694 bolívares . Meanwhile, hyper inflation since 2018 has caused the prices of basic commodities such as cheese, meat, pasta, chicken to increase by more than the minimum wage salary
Hyperinflation can destroy the stability of the value of a country’s money. The impact of hyperinflation in addition to the crazy increase in staple food prices:
1. Food looting in supermarkets and other markets
2. Bank customers cannot make withdrawals / Bank Run
3. The business sector should raise the minimum wage at a high wages
it’s not always an investment and forget it then take the profit to be a good thing. We still have to pay attention to global and national economic developments
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