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Time and Growth

by

Adam Starchild


Time is a vital factor in accumulating wealth. The following tables illustrate the effect of time and after-tax interest in accumulating funds.

GROWTH OF A SINGLE LUMP SUM INVESTMENT
Years of Growth$10,000
6%
Compounded at 10%
5 $ 13,382 $ 16,110
10 17,908 25,940
15 23,966 41,770
20 32,071 67,270
25 42,919 108,350
30 57,435 174,490
35 76,861 281,020
40 102,857 452,590

In other words, in a period 8 times longer - (40 years rather than 5 years) the investment result at 10% is 28 times greater growth ($452,590 divided by $16,110).



GROWTH OF A FUND TO WHICH $2,000 IS ADDED AT THE BEGINNING OF EACH YEAR
$2,000 Per Year at 6% Total ContributedWill Grow toGrowthPercent Increase
5 $ 10,000 $ 11,951 $ 1,951 20%
10 20,000 27,943 7,943 40%
15 30,000 49,345 19,345 64%
20 40,000 77,985 37,985 95%
25 50,000 116,313 66,313 133%
30 60,000 167,603 107,603 179%
35 70,000 236,242 166,242 237%
40 80,000 328,095 248,095 310%

These tables assume a 6% rate of return after taxes and that the earnings are reinvested.


About the Author
For twenty years Adam Starchild has been writing books about these subjects, and they are published by a variety of publishers. They are available in many bookstores or public libraries.


Copyright © 1995 by Adam Starchild
The Investor's Library has reprinted this copyrighted article with the permission of the author.


 
 
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