Question 1

What is compound interest?

Accepted Answer

Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods, causing wealth to grow exponentially over time.

Question 2

What is Dollar Cost Averaging (DCA)?

Accepted Answer

Dollar Cost Averaging is an investment strategy of regularly investing a fixed amount regardless of market conditions, reducing the impact of volatility over time.

Question 3

How do I calculate investment returns?

Accepted Answer

Use Invesumo's free calculator to project investment returns. Enter your initial investment, monthly contributions, expected return rate, and time horizon to see your projected growth.