schoolhouse_header
schoolhouse_side

Visual 5

Watching Money Grow with Time

Three factors affect how money grows
in a savings account.

          1. the amount you save
          2. the interest rate
          3. the length of time you save

Let's see what happens when a saver leaves the money
in the bank for a LONGER PERIOD OF TIME with the
SAME amount deposited and the SAME interest rate.

A

B

C

D


Amount of deposit

Annual
Interest
Rate


Number
of years


Total at the end of the time period

$10,000

6%

10

  17,908.48

$10,000

6%

20

  32,071.36

$10,000

6%

30

  57,434.91

$10,000

6%

40

102,857.18

back to lesson