Page 42 - Book2E

Compound Interest Growth for $100 over Time
Number of Years
5 10 15
20 25
30
$83,573 $100,954 $122,709 $150,030 $184,447 $227,933
5% $6,829
6% $7,012
7% $7,201
8% $7,397
9% $7,599
10% $7,808
$15,593 $26,840 $16,470 $29,227 $17,409 $31,881 $18,417 $34,835 $19,497 $38,124 $20,655 $41,792
$41,275 $46,435 $52,397 $59,295 $67,290 $76,570
$59,799 $69,646 $81,480 $95,734
$112,953 $133,789
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• Reconsidering the lifestyle you want and see where you can reduce expenses.
Something to Think About
When you’re just about ready to retire is not the best time to be think- ing about your financial plans. The chart shows how a savings of $100 a month can grow over different time periods. You can see that the sooner you begin, the greater the benefit. The numbers on the left show interest rates you might be able to earn on your savings and the numbers across the top show the number of years you leave the money
in savings (see table below).
Where Should You Put Your Money?
Once you’ve decided how much you need to save, determine how many years you have to make your money work for you before you retire. There are many ways to invest your money. Some of them are
Retirement: Are You an Ant or a Grasshopper?
Rate of Return