Compound Interest on $25,000 at 5% for 20 Years

$25,000 invested at 5% annual compound interest for 20 years grows to $66,332.44. That is $41,332.44 in interest earned on top of your original $25,000 — a 165.3% total return. Compound interest is called the "eighth wonder of the world" because interest earns interest, creating exponential rather than linear growth over time.

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