4 Reasons to Stop Stalling and Invest Right Now
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If you invest $10,000 today into a large-cap stock fund that earns 8% on average each year, you would have $10,800 after a year. Over the next year, your account's original $10,000 will earn 8%, as will your $800 in earned interest from the first year. This is called compound interest and happens when the money you gained through earned interest also earns interest.
The more time your money is invested, the more interest accumulates and the more dramatic the effect that compounding has. Using these assumptions, if you never added another dollar to your original investment, in 10 years, you would have $21,589; in 20 years, $46,610; and in 30 years, $100,627.
Source Fool.com
