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The
Power of Compound Interest |
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What a
Difference a Percentage Makes!
When you earn interest, your account balance continues to grow. In
time, you actually earn interest on your interest! Even one percentage
point can make a huge difference in the long run. Look at this chart
to see what happens to a $1,000 investment over 40 years...
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The
hypothetical illustration is intended to demonstrate compounding at
various rates and is not intended to illustrate the performance of any
actual program. The hypothetical illustration shows constant rates of
return, whereas, actual rates of return may fluctuate. Account values
were obtained by using a nominal rate compounded monthly.
Contributions are made at the beginning of the period.
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