Compound Interest on $5,000 at 5% for 10 Years

$5,000 invested at 5% annual compound interest for 10 years grows to $8,144.47. That is $3,144.47 in interest earned on top of your original $5,000 — a 62.9% 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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