Compounding

When your money earns interest or gains, and that interest earns interest, that’s compounding. It helps your money grow quicker. Think of a snowball rolling down a hill gathering more snow and getting bigger and bigger.

Here’s an example. If you invested $1,000.00 with a 6% rate of return, after 1 year you would have earned $60.00 for a total of $1,060.00. Keep that invested for another year, and in year 2, you would have earned $63.00 and now have a total of $1,123.60. Interest on your interest adds up!

Stay invested and watch how that snowball grows!

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