$100,000 invested at 7% annual return compounded monthly grows to $403,874 in 20 years — $303,874 of that is compound interest. Adding $200 monthly contributions would grow the total to $508,059.
Key Numbers
- •Starting amount: $100,000
- •Value after 20 years at 7%: $403,874
- •Interest earned: $303,874
- •With $200/month added: $508,059
- •At 7%, money doubles roughly every 10.3 years (rule of 72)