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Infographic: How Compound Interest Works

Apr 20, 2016 3 min read

 

Download PDF here   for Annual Compound Interest Rate PDF Opens in a new window.

The compounding concept is hypothetical and for illustrative purposes only and is not intended to represent performance of any specific investment, which may fluctuate. This example is based on a hypothetical rate of return of 5% compounded annually. No taxes are considered in the calculations; generally withdrawals are taxable at ordinary rates. It is possible to lose money by investing in securities.

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