Continuously Compounded Interest | Creating Big Passive Income – Passive Income Article

Have you ever wondered why so many people are obsessed with making money from the stock market or other similar investments? It’s because of an investor’s treasure known as compounding passive interest.

If you want in on this treasure, you should become acquainted with the power of continuously compounded interest, or compounding income.

Compounded income and compounded interest can make your money to grow beyond any sum you could ever hope to achieve yourself. Here’s how.

The Wonder of Compound Interest and its Brainchild, Compounding Income

Albert Einstein has been credited with calling compound interest “the greatest mathematical discovery of all time”.  And he is absolutely right when it comes to practical applications; especially regarding your finances.

Compounding interest is a phenomenon that occurs when the earnings from your investments combine with your original investments (called the principal) to build up larger and larger earnings as time goes on.

As you’ll see in the example below, eventually the earnings growth becomes so large that they surpass the original principal contributions and begin to explode at an exceptional rate.

This is why successful investors say that gaining the first $100,000 in investing is the…