Usage:
Calculate the "tyranny of compounding costs" as laid out by Jack Bogle on pages 47-49 of "The Little Book of Common Sense Investing". This is how much your investing expenses cost you over time. According to Jack Bogle there are three primary sources of costs: 1. The fund's expense ratio, 2. The sales charge paid on each purchase of shares (loads), and 3. The cost of the purchase and sale of securities within a fund (turnover costs).
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Args:
money_invested: principal, dollar amount.
interest_rate: expected annual return expressed as a whole percentage.
investment_costs: annual investment costs expressed as a whole percentage. This could simply be a fund's expense ratio, however, more accurate input might include turnover costs, loads, and any other fees.
time_period: investing time horizon, how long the investment will be held, should be a number of years.
Returns:
Dollar amount, how much your investment expenses costed (or will cost) you over the lifetime of an investment, the "tyranny of compounding costs".