2ONFinance
Back to Growing Money

Chapter 7 - Growing Your Money

Compound Interest

See how interest can earn interest in a simple hypothetical example.

5-8 min
Free lesson

What you'll learn

  • Define compound interest
  • Calculate growth over time
  • Recognize the example is hypothetical

Interest is money that can be added to savings. Compound interest means future interest can be earned on the original money plus earlier interest.

Hypothetical only

The rate in this activity is an example. Real accounts and investments can have different rates, fees, taxes, and risks.

Interactive exercise

Watch $100 grow

A hypothetical 5% yearly rate is added for several years.

$147.75

Hypothetical 5% annual rate. Real outcomes vary.

Year 1
$105.00
Year 2
$110.25
Year 3
$115.76
Year 4
$121.55
Year 5
$127.63
Year 6
$134.01
Year 7
$140.71
Year 8
$147.75

Lesson Progress

Finish the activity to complete this lesson.

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