A magical compound discount refers to a type of discount that is applied to a product or service multiple times over a given time period. It is called "magical" because the discount is compounded, resulting in an even greater reduction in price over time. The concept of compound discount stems from compound interest, which is commonly used in finance and investment. In finance, compound interest is calculated by adding the interest earned on an investment or loan to the principal amount, and then calculating the interest on the new total. This process is repeated over time, resulting in exponential growth of the investment or debt. Similarly, a compound discount works by applying a discount to a product or service, and then applying the discount to the discounted price again, and so on.
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With two decades of business and finance journalism experience, Ben has covered breaking market news, written on equity markets for Investopedia, and edited personal finance content for Bankrate and LendingTree. Continuing with the example above, if you started with a savings account balance of 1,000 but the interest you earned compounded daily instead of annually, after 30 years you d end up with a total balance of 4,481.
Similarly, a compound discount works by applying a discount to a product or service, and then applying the discount to the discounted price again, and so on. This can lead to significant savings for the buyer, as the discount is being applied to a continuously decreasing price. For example, consider a product that is originally priced at $100.
The Life-Changing Magic Of Compound Interest
I'm a freelance journalist, content creator and regular contributor to Forbes and Monster.[author_bio_separator] I've written for AARP, the BBC, Family Circle, LearnVest, Money, Parents and Prevention, among others. Find me at kateashford.com or follow me at @kateashford.
Kate Ashford ContributorI'm a freelance journalist, content creator and regular contributor to Forbes and Monster.[author_bio_separator] I've written for AARP, the BBC, Family Circle, LearnVest, Money, Parents and Prevention, among others. Find me at kateashford.com or follow me at @kateashford.
Contributor Benjamin Curry editorBen is the Retirement and Investing Editor for Forbes Advisor. With two decades of business and finance journalism experience, Ben has covered breaking market news, written on equity markets for Investopedia, and edited personal finance content for Bankrate and LendingTree.
Benjamin Curry editorBen is the Retirement and Investing Editor for Forbes Advisor. With two decades of business and finance journalism experience, Ben has covered breaking market news, written on equity markets for Investopedia, and edited personal finance content for Bankrate and LendingTree.
editorUpdated: Mar 28, 2023, 11:34am
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Getty ImagesCompound interest is when the interest you earn on a balance in a savings or investing account is reinvested, earning you more interest. As a wise man once said, “Money makes money. And the money that money makes, makes money.”
Compound interest accelerates the growth of your savings and investments over time. Conversely, it also expands the debt balances you owe over time. Here’s everything you need to know about what Albert Einstein allegedly called the eighth wonder of the world.
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If a 10% discount is applied, the price would be reduced to $90. With a compound discount, another 10% discount is applied to the new price, resulting in a final price of $81. This represents a total discount of 19% ($19) from the original price. The magical compound discount can be particularly beneficial for long-term purchases or subscriptions. For instance, a subscription service that offers a 10% discount every year would result in substantial savings over several years. The discount would compound each year, leading to a progressively lower price for the subscription. It is important to note that not all discounts are compounded. Most discounts are applied only once and do not accumulate over time. However, some businesses may offer compound discounts as a form of customer loyalty or as a promotional strategy to encourage long-term commitment. In conclusion, a magical compound discount is a type of discount that is applied multiple times to a product or service. It is called "magical" because the discount is compounded, resulting in greater savings over time. This concept draws from the concept of compound interest in finance and can be advantageous for long-term purchases or subscriptions..
Reviews for "The Magic Math of Magical Compound Discount: How It Works"
1. Sarah - 1 star - I was really disappointed with Magical Compound Discount. The plot was confusing and all over the place, and I struggled to connect with any of the characters. The writing felt choppy and rushed, and I found myself questioning the author's choices throughout the book. Overall, I would not recommend this book to others.
2. John - 2 stars - I had high hopes for Magical Compound Discount, but it just didn't live up to my expectations. The magical elements of the story felt forced and contrived, and the dialogue was unrealistic and cliché. The pacing was all over the place, and I found myself getting bored and disinterested halfway through. I wouldn't recommend wasting your time on this book.
3. Emily - 2 stars - I found Magical Compound Discount to be a frustrating read. The world-building was poorly executed, and I never felt fully immersed in the story. The characters lacked depth and development, making it hard for me to care about what happened to them. The writing style was also lackluster, with awkward sentence structure and excessive use of adjectives. I wouldn't recommend this book to fans of the fantasy genre.