Compounding interest allows your money to grow exponentially over time. For example, if you invested $1,000 today and earned a 5% interest rate each year you would have $1,551, or a 55.1% rate of return after 9 years. This is because the interest that you earned on your money in year 1 earns interest in year 2 and so on and so forth.
Tele (k) Summary 2020-7-17
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