Concept
Version 10
Created by Boundless
Personal Financial Management
Compound Interest
The chart to the left shows how compound interest at various rates would increase Lynne's savings compared with simply putting the money in a shoebox. This is compound interest that you earn. And as you can see from an investment, compounding has a greater effect after the investment and interest have increased over a longer period.
Source
Boundless vets and curates high-quality, openly licensed content from around the Internet. This particular resource used the following sources:
Federal Reserve Bank of Dallas.
http://www.dallasfed.org/assets/documents/cd/wealth/wealth.pdf
Public domain.