Simple vs Compound Interest: A Major Difference in Results

If you invested $100,000 over 20 years, what would be the difference in results between simple interest, compound interest and a direct reinvestment program (DRIP). WATCH THIS NEXT➡️ • Notes Receivable vs No...
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Supporting information:
✅ Simple interest is a way to calculate interest earned on an investment. It is called "simple" because it does not take into account the effect of compounding.
✅ Compound interest is the interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on an investment. This means that interest is calculated not only on the initial amount of money (the principal) but also on the interest that has accumulated over time.
✅ A Direct Reinvestment Program (DRIP), often referred to as a Dividend Reinvestment Plan, is a program that allows investors to automatically reinvest their cash dividends into additional shares of the company's stock instead of receiving the dividends in cash.
Recommend reading: Buffett: The Making of an American Capitalist ➡️ amzn.to/3TAKv39
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Chapters
0:30 Simple Interest
2:26 Compound Interest
5:43 DRIP (Direct Reinvestment Program)