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Old 06-09-2011, 09:15 AM
Rob D. Rob D. is offline
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Join Date: Apr 2009
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I'm probably leaving out key information, but using a compound interest calculator at this site -- http://www.moneychimp.com/calculator...calculator.htm -- I entered the following values:

Principal: $1,500

Years to grow: 40

Interest is compounded four times annually (quarterly)

Interest rate: 12 percent (which I thought was generous over the course of 40 years; some years the market will do better, other years worse)

The calculated future value comes to $169,842.

Changing the interest rate to 15 percent results in a future value of $542,235.

EDITED TO ADD: I was typing as Max was posting. I think we're making the same point.

Last edited by Rob D.; 06-09-2011 at 09:16 AM.
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