$20,000 invested at 10% annual return compounded monthly grows to $54,141 in 10 years — $34,141 of that is compound interest. Adding $200 monthly contributions would grow the total to $95,110.
Key Numbers
- •Starting amount: $20,000
- •Value after 10 years at 10%: $54,141
- •Interest earned: $34,141
- •With $200/month added: $95,110
- •At 10%, money doubles roughly every 7.2 years (rule of 72)