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Imagine you've just created a popular mobile app that goes viral overnight. On the first day, 10 people download your app. On the second day, the number of users doubles, and it keeps doubling every day. After 20 days, how many people will have downloaded your app?
Exponential growth can be difficult to intuitively grasp, but if you calculate it, you'll find that after only 20 days, over 10 million people will have downloaded your app. This example demonstrates the astounding potential of exponential growth, and how easy it is to underestimate its power.
Understanding exponential growth and Compound Effect is essential for long-term financial success. Compound interest can turn relatively small investments into significant sums over time. The more time you give your money to grow, the more powerful the compounding effect becomes.
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19 апр 2024