How is compound interest calculated?
Compound interest is a function of two main components, time and growth (interest) rate. You may consider the following to help illustrate how compound interest can help grow your savings.
As an example, if you began with $100 that’s compounded (grows) at a 3% annual interest rate and you contributed $50 every week, your money would grow to become ~$125,000 (37% of which was earned by compound interest) in 30 years. You can use our compound interest calculator to find out how an investment can grow over time with compound interest.
You may wish to speak with a registered financial representative for investment advice that fits your personal situation.