{"id":1055,"date":"2017-05-23T04:05:37","date_gmt":"2017-05-23T04:05:37","guid":{"rendered":"http:\/\/emilynews.com\/blog\/?p=1055"},"modified":"2017-05-23T04:05:37","modified_gmt":"2017-05-23T04:05:37","slug":"hyip-insights-11-compounding-miracle-monster-part-2","status":"publish","type":"post","link":"https:\/\/emilynews.com\/blog\/?p=1055","title":{"rendered":"HYIP Insights #11 &#8212; Is Compounding a Miracle or a Monster? Part 2"},"content":{"rendered":"<p><a name=\"irc\"><\/a><strong>Effect of Interest Rate on Compounding.<\/strong><\/p>\n<p>In the first part of this article, we first discussed what compounding is and then discussed the difference between full (100%) and partial (less than 100%) compounding.\u00a0 In each case we took a look at a numerical example.\u00a0 Finally, we compared the results for full and partial compounding and concluded that, although full compounding has the greatest potential for profit, it is also the most risky way to go and that this is why many investors opt for partial compounding.\u00a0 We didn\u2019t mention it at the time but partial compounding has a wide variety of possibilities, ranging from almost nothing (less than 25%), to medium (25% to 75%), and to high (greater than 75%).\u00a0 If you encounter an HYIP that offers compounding, it would be good use of your time to play around with their online calculator to explore the effects of interest rate on future returns.\u00a0 There are so many possibilities that we can\u2019t possibly do it here. \ud83d\ude42<\/p>\n<p>Perhaps I should add a note here which is that, the reason we use compounding is to increase our principal.\u00a0 This implies that programs which offer compounding will also give you the opportunity to withdraw your principal at the end of the investment term.\u00a0 This is the best of all possible worlds as your principal is growing, which is like a savings account that can be withdrawn whenever you want (or at least at the end of the investment term) and your interest earnings are also increasing, ideally to a point where they can ultimately\u00a0 provide passive income at the level that you desire (when you stop compounding).\u00a0 Of course, it IS possible that this might NOT be the case and that your principal might NOT be returned.\u00a0 In this situation, the investor\u2019s objective would simply be to use compounding until his principal reached a level such that his INTEREST earnings are in line with his financial objectives.\u00a0 In other words, if your principal is not returned, you only get the second benefit of compounding<\/p>\n<p>OK, moving on to the next item I\u2019d like to discuss, let\u2019s take a look at how different interest rates effect compounding.\u00a0 It\u2019s kind of obvious that a high interest rate will increase your returns.\u00a0 But, by how much?\u00a0 What we will discover is really quite amazing.<\/p>\n<p>Let\u2019s compare three different interest rates for the case of full compounding.\u00a0 The rates we will choose are 1.4%, 3%, and 8%.\u00a0 I\u2019ve chosen these rates as we\u2019ll use them in further examples in another part of this article series.\u00a0 In all cases, we\u2019ll take $1,000 as our initial deposit.\u00a0 I\u2019m going to show the results for EVERY day &#8212; all the way out to the end of the 110 day investment plan.\u00a0 I\u2019m doing this for a number of reasons that will become apparent when we discuss the table.\u00a0 Scroll through all this quickly if you don\u2019t like numbers!<\/p>\n<table width=\"295\">\n<tbody>\n<tr>\n<td colspan=\"4\" width=\"295\"><strong>Effect of Interest Rate on Principal<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"39\"><strong>Day<\/strong><\/td>\n<td width=\"67\"><strong>1.40%<\/strong><\/td>\n<td width=\"79\"><strong>3%<\/strong><\/td>\n<td width=\"109\"><strong>7%<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"39\"><\/td>\n<td width=\"67\">$1,000<\/td>\n<td width=\"79\">$1,000<\/td>\n<td width=\"109\">$1,000<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">1<\/td>\n<td width=\"67\">$1,014<\/td>\n<td width=\"79\">$1,030<\/td>\n<td width=\"109\">$1,070<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">2<\/td>\n<td width=\"67\">$1,028<\/td>\n<td width=\"79\">$1,061<\/td>\n<td width=\"109\">$1,145<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">3<\/td>\n<td width=\"67\">$1,043<\/td>\n<td width=\"79\">$1,093<\/td>\n<td width=\"109\">$1,225<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">4<\/td>\n<td width=\"67\">$1,057<\/td>\n<td width=\"79\">$1,126<\/td>\n<td width=\"109\">$1,311<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">5<\/td>\n<td width=\"67\">$1,072<\/td>\n<td width=\"79\">$1,159<\/td>\n<td width=\"109\">$1,403<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">6<\/td>\n<td width=\"67\">$1,087<\/td>\n<td width=\"79\">$1,194<\/td>\n<td width=\"109\">$1,501<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">7<\/td>\n<td width=\"67\">$1,102<\/td>\n<td width=\"79\">$1,230<\/td>\n<td width=\"109\">$1,606<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">8<\/td>\n<td width=\"67\">$1,118<\/td>\n<td width=\"79\">$1,267<\/td>\n<td width=\"109\">$1,718<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">9<\/td>\n<td width=\"67\">$1,133<\/td>\n<td width=\"79\">$1,305<\/td>\n<td width=\"109\">$1,838<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">10<\/td>\n<td width=\"67\">$1,149<\/td>\n<td width=\"79\">$1,344<\/td>\n<td width=\"109\">$1,967<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">11<\/td>\n<td width=\"67\">$1,165<\/td>\n<td width=\"79\">$1,384<\/td>\n<td width=\"109\">$2,105<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">12<\/td>\n<td width=\"67\">$1,182<\/td>\n<td width=\"79\">$1,426<\/td>\n<td width=\"109\">$2,252<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">13<\/td>\n<td width=\"67\">$1,198<\/td>\n<td width=\"79\">$1,469<\/td>\n<td width=\"109\">$2,410<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">14<\/td>\n<td width=\"67\">$1,215<\/td>\n<td width=\"79\">$1,513<\/td>\n<td width=\"109\">$2,579<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">15<\/td>\n<td width=\"67\">$1,232<\/td>\n<td width=\"79\">$1,558<\/td>\n<td width=\"109\">$2,759<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">16<\/td>\n<td width=\"67\">$1,249<\/td>\n<td width=\"79\">$1,605<\/td>\n<td width=\"109\">$2,952<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">17<\/td>\n<td width=\"67\">$1,267<\/td>\n<td width=\"79\">$1,653<\/td>\n<td width=\"109\">$3,159<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">18<\/td>\n<td width=\"67\">$1,284<\/td>\n<td width=\"79\">$1,702<\/td>\n<td width=\"109\">$3,380<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">19<\/td>\n<td width=\"67\">$1,302<\/td>\n<td width=\"79\">$1,754<\/td>\n<td width=\"109\">$3,617<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">20<\/td>\n<td width=\"67\">$1,321<\/td>\n<td width=\"79\">$1,806<\/td>\n<td width=\"109\">$3,870<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">21<\/td>\n<td width=\"67\">$1,339<\/td>\n<td width=\"79\">$1,860<\/td>\n<td width=\"109\">$4,141<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">22<\/td>\n<td width=\"67\">$1,358<\/td>\n<td width=\"79\">$1,916<\/td>\n<td width=\"109\">$4,430<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">23<\/td>\n<td width=\"67\">$1,377<\/td>\n<td width=\"79\">$1,974<\/td>\n<td width=\"109\">$4,741<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">24<\/td>\n<td width=\"67\">$1,396<\/td>\n<td width=\"79\">$2,033<\/td>\n<td width=\"109\">$5,072<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">25<\/td>\n<td width=\"67\">$1,416<\/td>\n<td width=\"79\">$2,094<\/td>\n<td width=\"109\">$5,427<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">26<\/td>\n<td width=\"67\">$1,435<\/td>\n<td width=\"79\">$2,157<\/td>\n<td width=\"109\">$5,807<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">27<\/td>\n<td width=\"67\">$1,456<\/td>\n<td width=\"79\">$2,221<\/td>\n<td width=\"109\">$6,214<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">28<\/td>\n<td width=\"67\">$1,476<\/td>\n<td width=\"79\">$2,288<\/td>\n<td width=\"109\">$6,649<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">29<\/td>\n<td width=\"67\">$1,497<\/td>\n<td width=\"79\">$2,357<\/td>\n<td width=\"109\">$7,114<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">30<\/td>\n<td width=\"67\">$1,518<\/td>\n<td width=\"79\">$2,427<\/td>\n<td width=\"109\">$7,612<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">31<\/td>\n<td width=\"67\">$1,539<\/td>\n<td width=\"79\">$2,500<\/td>\n<td width=\"109\">$8,145<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">32<\/td>\n<td width=\"67\">$1,560<\/td>\n<td width=\"79\">$2,575<\/td>\n<td width=\"109\">$8,715<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">33<\/td>\n<td width=\"67\">$1,582<\/td>\n<td width=\"79\">$2,652<\/td>\n<td width=\"109\">$9,325<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">34<\/td>\n<td width=\"67\">$1,604<\/td>\n<td width=\"79\">$2,732<\/td>\n<td width=\"109\">$9,978<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">35<\/td>\n<td width=\"67\">$1,627<\/td>\n<td width=\"79\">$2,814<\/td>\n<td width=\"109\">$10,677<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">36<\/td>\n<td width=\"67\">$1,650<\/td>\n<td width=\"79\">$2,898<\/td>\n<td width=\"109\">$11,424<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">37<\/td>\n<td width=\"67\">$1,673<\/td>\n<td width=\"79\">$2,985<\/td>\n<td width=\"109\">$12,224<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">38<\/td>\n<td width=\"67\">$1,696<\/td>\n<td width=\"79\">$3,075<\/td>\n<td width=\"109\">$13,079<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">39<\/td>\n<td width=\"67\">$1,720<\/td>\n<td width=\"79\">$3,167<\/td>\n<td width=\"109\">$13,995<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">40<\/td>\n<td width=\"67\">$1,744<\/td>\n<td width=\"79\">$3,262<\/td>\n<td width=\"109\">$14,974<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">41<\/td>\n<td width=\"67\">$1,768<\/td>\n<td width=\"79\">$3,360<\/td>\n<td width=\"109\">$16,023<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">42<\/td>\n<td width=\"67\">$1,793<\/td>\n<td width=\"79\">$3,461<\/td>\n<td width=\"109\">$17,144<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">43<\/td>\n<td width=\"67\">$1,818<\/td>\n<td width=\"79\">$3,565<\/td>\n<td width=\"109\">$18,344<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">44<\/td>\n<td width=\"67\">$1,844<\/td>\n<td width=\"79\">$3,671<\/td>\n<td width=\"109\">$19,628<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">45<\/td>\n<td width=\"67\">$1,869<\/td>\n<td width=\"79\">$3,782<\/td>\n<td width=\"109\">$21,002<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">46<\/td>\n<td width=\"67\">$1,896<\/td>\n<td width=\"79\">$3,895<\/td>\n<td width=\"109\">$22,473<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">47<\/td>\n<td width=\"67\">$1,922<\/td>\n<td width=\"79\">$4,012<\/td>\n<td width=\"109\">$24,046<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">48<\/td>\n<td width=\"67\">$1,949<\/td>\n<td width=\"79\">$4,132<\/td>\n<td width=\"109\">$25,729<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">49<\/td>\n<td width=\"67\">$1,976<\/td>\n<td width=\"79\">$4,256<\/td>\n<td width=\"109\">$27,530<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">50<\/td>\n<td width=\"67\">$2,004<\/td>\n<td width=\"79\">$4,384<\/td>\n<td width=\"109\">$29,457<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">51<\/td>\n<td width=\"67\">$2,032<\/td>\n<td width=\"79\">$4,515<\/td>\n<td width=\"109\">$31,519<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">52<\/td>\n<td width=\"67\">$2,061<\/td>\n<td width=\"79\">$4,651<\/td>\n<td width=\"109\">$33,725<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">53<\/td>\n<td width=\"67\">$2,089<\/td>\n<td width=\"79\">$4,790<\/td>\n<td width=\"109\">$36,086<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">54<\/td>\n<td width=\"67\">$2,119<\/td>\n<td width=\"79\">$4,934<\/td>\n<td width=\"109\">$38,612<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">55<\/td>\n<td width=\"67\">$2,148<\/td>\n<td width=\"79\">$5,082<\/td>\n<td width=\"109\">$41,315<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">56<\/td>\n<td width=\"67\">$2,178<\/td>\n<td width=\"79\">$5,235<\/td>\n<td width=\"109\">$44,207<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">57<\/td>\n<td width=\"67\">$2,209<\/td>\n<td width=\"79\">$5,392<\/td>\n<td width=\"109\">$47,302<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">58<\/td>\n<td width=\"67\">$2,240<\/td>\n<td width=\"79\">$5,553<\/td>\n<td width=\"109\">$50,613<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">59<\/td>\n<td width=\"67\">$2,271<\/td>\n<td width=\"79\">$5,720<\/td>\n<td width=\"109\">$54,156<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">60<\/td>\n<td width=\"67\">$2,303<\/td>\n<td width=\"79\">$5,892<\/td>\n<td width=\"109\">$57,946<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">61<\/td>\n<td width=\"67\">$2,335<\/td>\n<td width=\"79\">$6,068<\/td>\n<td width=\"109\">$62,003<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">62<\/td>\n<td width=\"67\">$2,368<\/td>\n<td width=\"79\">$6,250<\/td>\n<td width=\"109\">$66,343<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">63<\/td>\n<td width=\"67\">$2,401<\/td>\n<td width=\"79\">$6,438<\/td>\n<td width=\"109\">$70,987<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">64<\/td>\n<td width=\"67\">$2,435<\/td>\n<td width=\"79\">$6,631<\/td>\n<td width=\"109\">$75,956<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">65<\/td>\n<td width=\"67\">$2,469<\/td>\n<td width=\"79\">$6,830<\/td>\n<td width=\"109\">$81,273<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">66<\/td>\n<td width=\"67\">$2,503<\/td>\n<td width=\"79\">$7,035<\/td>\n<td width=\"109\">$86,962<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">67<\/td>\n<td width=\"67\">$2,538<\/td>\n<td width=\"79\">$7,246<\/td>\n<td width=\"109\">$93,049<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">68<\/td>\n<td width=\"67\">$2,574<\/td>\n<td width=\"79\">$7,463<\/td>\n<td width=\"109\">$99,563<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">69<\/td>\n<td width=\"67\">$2,610<\/td>\n<td width=\"79\">$7,687<\/td>\n<td width=\"109\">$106,532<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">70<\/td>\n<td width=\"67\">$2,646<\/td>\n<td width=\"79\">$7,918<\/td>\n<td width=\"109\">$113,989<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">71<\/td>\n<td width=\"67\">$2,683<\/td>\n<td width=\"79\">$8,155<\/td>\n<td width=\"109\">$121,969<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">72<\/td>\n<td width=\"67\">$2,721<\/td>\n<td width=\"79\">$8,400<\/td>\n<td width=\"109\">$130,506<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">73<\/td>\n<td width=\"67\">$2,759<\/td>\n<td width=\"79\">$8,652<\/td>\n<td width=\"109\">$139,642<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">74<\/td>\n<td width=\"67\">$2,798<\/td>\n<td width=\"79\">$8,912<\/td>\n<td width=\"109\">$149,417<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">75<\/td>\n<td width=\"67\">$2,837<\/td>\n<td width=\"79\">$9,179<\/td>\n<td width=\"109\">$159,876<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">76<\/td>\n<td width=\"67\">$2,877<\/td>\n<td width=\"79\">$9,454<\/td>\n<td width=\"109\">$171,067<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">77<\/td>\n<td width=\"67\">$2,917<\/td>\n<td width=\"79\">$9,738<\/td>\n<td width=\"109\">$183,042<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">78<\/td>\n<td width=\"67\">$2,958<\/td>\n<td width=\"79\">$10,030<\/td>\n<td width=\"109\">$195,855<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">79<\/td>\n<td width=\"67\">$2,999<\/td>\n<td width=\"79\">$10,331<\/td>\n<td width=\"109\">$209,565<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">80<\/td>\n<td width=\"67\">$3,041<\/td>\n<td width=\"79\">$10,641<\/td>\n<td width=\"109\">$224,234<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">81<\/td>\n<td width=\"67\">$3,084<\/td>\n<td width=\"79\">$10,960<\/td>\n<td width=\"109\">$239,931<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">82<\/td>\n<td width=\"67\">$3,127<\/td>\n<td width=\"79\">$11,289<\/td>\n<td width=\"109\">$256,726<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">83<\/td>\n<td width=\"67\">$3,171<\/td>\n<td width=\"79\">$11,628<\/td>\n<td width=\"109\">$274,697<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">84<\/td>\n<td width=\"67\">$3,215<\/td>\n<td width=\"79\">$11,976<\/td>\n<td width=\"109\">$293,926<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">85<\/td>\n<td width=\"67\">$3,260<\/td>\n<td width=\"79\">$12,336<\/td>\n<td width=\"109\">$314,500<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">86<\/td>\n<td width=\"67\">$3,306<\/td>\n<td width=\"79\">$12,706<\/td>\n<td width=\"109\">$336,515<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">87<\/td>\n<td width=\"67\">$3,352<\/td>\n<td width=\"79\">$13,087<\/td>\n<td width=\"109\">$360,071<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">88<\/td>\n<td width=\"67\">$3,399<\/td>\n<td width=\"79\">$13,480<\/td>\n<td width=\"109\">$385,276<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">89<\/td>\n<td width=\"67\">$3,446<\/td>\n<td width=\"79\">$13,884<\/td>\n<td width=\"109\">$412,246<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">90<\/td>\n<td width=\"67\">$3,495<\/td>\n<td width=\"79\">$14,300<\/td>\n<td width=\"109\">$441,103<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">91<\/td>\n<td width=\"67\">$3,544<\/td>\n<td width=\"79\">$14,729<\/td>\n<td width=\"109\">$471,980<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">92<\/td>\n<td width=\"67\">$3,593<\/td>\n<td width=\"79\">$15,171<\/td>\n<td width=\"109\">$505,019<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">93<\/td>\n<td width=\"67\">$3,644<\/td>\n<td width=\"79\">$15,627<\/td>\n<td width=\"109\">$540,370<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">94<\/td>\n<td width=\"67\">$3,695<\/td>\n<td width=\"79\">$16,095<\/td>\n<td width=\"109\">$578,196<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">95<\/td>\n<td width=\"67\">$3,746<\/td>\n<td width=\"79\">$16,578<\/td>\n<td width=\"109\">$618,670<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">96<\/td>\n<td width=\"67\">$3,799<\/td>\n<td width=\"79\">$17,076<\/td>\n<td width=\"109\">$661,977<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">97<\/td>\n<td width=\"67\">$3,852<\/td>\n<td width=\"79\">$17,588<\/td>\n<td width=\"109\">$708,315<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">98<\/td>\n<td width=\"67\">$3,906<\/td>\n<td width=\"79\">$18,115<\/td>\n<td width=\"109\">$757,897<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">99<\/td>\n<td width=\"67\">$3,961<\/td>\n<td width=\"79\">$18,659<\/td>\n<td width=\"109\">$810,950<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">100<\/td>\n<td width=\"67\">$4,016<\/td>\n<td width=\"79\">$19,219<\/td>\n<td width=\"109\">$867,716<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">101<\/td>\n<td width=\"67\">$4,072<\/td>\n<td width=\"79\">$19,795<\/td>\n<td width=\"109\">$928,456<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">102<\/td>\n<td width=\"67\">$4,129<\/td>\n<td width=\"79\">$20,389<\/td>\n<td width=\"109\">$993,448<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">103<\/td>\n<td width=\"67\">$4,187<\/td>\n<td width=\"79\">$21,001<\/td>\n<td width=\"109\">$1,062,990<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">104<\/td>\n<td width=\"67\">$4,246<\/td>\n<td width=\"79\">$21,631<\/td>\n<td width=\"109\">$1,137,399<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">105<\/td>\n<td width=\"67\">$4,305<\/td>\n<td width=\"79\">$22,280<\/td>\n<td width=\"109\">$1,217,017<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">106<\/td>\n<td width=\"67\">$4,365<\/td>\n<td width=\"79\">$22,948<\/td>\n<td width=\"109\">$1,302,208<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">107<\/td>\n<td width=\"67\">$4,427<\/td>\n<td width=\"79\">$23,636<\/td>\n<td width=\"109\">$1,393,363<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">108<\/td>\n<td width=\"67\">$4,488<\/td>\n<td width=\"79\">$24,346<\/td>\n<td width=\"109\">$1,490,898<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">109<\/td>\n<td width=\"67\">$4,551<\/td>\n<td width=\"79\">$25,076<\/td>\n<td width=\"109\">$1,595,261<\/td>\n<\/tr>\n<tr>\n<td width=\"39\">110<\/td>\n<td width=\"67\">$4,615<\/td>\n<td width=\"79\">$25,828<\/td>\n<td width=\"109\">$1,706,929<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>In case you&#8217;ve forgotten, since we\u2019re compounding 100%, all of our interest earnings are being reinvested, that is, they\u2019re being added to the principal.\u00a0 For example, in the 1.4% plan, the interest you earn on day 109 is the difference between the principal for day 109 and day 110 (or $64).\u00a0 For the 3% plan the interest earned on day 109 will be $752 (25,828 \u2013 25,076) &#8212; which wouldn\u2019t be a bad daily income.\u00a0 And, finally, for the 7% plan, the interest earned on day 109 would be $111,668 (1,706,929 \u2013 1,595,261) &#8212; which is off the chart!<\/p>\n<p>Obviously, interest is EVERYTHING!\u00a0 An HYIP that offers you an interest rate in the neighborhood of 1% can probably handle withdrawal of the compounded principal at the completion of the investment term.\u00a0 My opinion is that it would be difficult (but not impossible) for an HYIP to return the compounded principal at the completion of a plan offering in the neighborhood of 3% interest.\u00a0 In my opinion (which could be wrong!), plans offering more than this will probably close before the end of the first investment cycle.\u00a0 I don\u2019t think there is an HYIP anywhere that could pay its members a withdrawal approaching two million dollars &#8212; which would be the case with the 8% plan.<\/p>\n<p>The bottom line with respect to interest and compounding is that more is better.\u00a0 But, the higher you go, the more probable it will become that a program will close its doors before it becomes time for it to pay withdrawals of the highly compounded principals.\u00a0 So, long term investment in such a program would be extremely risky &#8212; even if you, personally, don\u2019t get involved with compounding your investment.<\/p>\n<p><a name=\"etc\"><\/a><strong>Effect of Time on Compounding.<\/strong><\/p>\n<p>It is easy to see the effect of time on compounding.\u00a0 In a word, the longer you let your principal compound, the larger it becomes.\u00a0 And, the compounding effect starts to really kick in after a while.\u00a0 This is especially the case with programs that have a high interest rate.\u00a0 This becomes clear if you look at the numbers toward the end of the table &#8212; after around three months (90 days) of activity with the investment plan.\u00a0 As the days go by at this time, the principal starts to increase at a very rapid rate.\u00a0 For example, at the end of the 1.4% plan, the daily increase (interest) in principal was $64 which is 6.4% (64\/1000 x 100) of your original investment.\u00a0 In the 3% plan, the increase in principal was 75% (752\/1,000 x 100) and, in the 8% plan, the increase was an amazing 11,000% (111,668\/1,000 x 100).\u00a0 However, again the dilemma is that, in order to take advantage of the benefit that compounding for a longer time offers, you have to put your investment at risk for a longer time.\u00a0 It\u2019s the case of Miracle vs. Monster again\u2026<\/p>\n<p>*********************<\/p>\n<p>If you like this article, please share it by using the social media buttons below.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Effect of Interest Rate on Compounding. In the first part of this article, we first discussed what compounding is and then discussed the difference between full (100%) and partial (less than 100%) compounding.\u00a0 In each &hellip; <a title=\"HYIP Insights #11 &#8212; Is Compounding a Miracle or a Monster? Part 2\" class=\"exalt-read-more\" href=\"https:\/\/emilynews.com\/blog\/?p=1055\"><span class=\"screen-reader-text\">HYIP Insights #11 &#8212; Is Compounding a Miracle or a Monster? Part 2<\/span>Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":311,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[106,110,10,54,111,53,90,91,97,70],"class_list":["post-1055","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hyip-insights","tag-compounding","tag-compounding-strategy","tag-hyip","tag-hyip-analysis","tag-hyip-compounding-option","tag-hyip-insights","tag-hyip-interest","tag-hyip-interest-rates","tag-hyips","tag-wise-hyip-investment","exalt-entry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>HYIP Insights #11 - Is Compounding a Miracle or a Monster? 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