At Harbro, we want our clients to understand as much as possible about interest rates and how they affect our lives. The more our clients understand, the easier it is for them to make wise decisions when borrowing money.
Here is a little quiz to test our understanding of compounding interest:
The calculator below shows that if you invested $2000 in an investment account that yielded an annual rate of 10% interest compounded monthly and left it alone to grow for 28 years, it would grow to be $32,509.91.
What do you think it would grow to if you left the same $2000 investment for the same 28 years if the annual yield was 20% interest compounded monthly instead of 10%??
Click here for the quiz answer