Compound interest is great for your retirement account, but it can also help your career. getty. Compound interest is often considered a wonder of the world, and this marvel can do wonders for ...

Using the numbers from the previous example, with compound interest, you'd earn $40 interest the first month the account is open, again bringing your balance to $1,040.

How compound interest can build real wealth Let’s illustrate with a real-world example: If you invest $500 per month from age 25 to 65 at an 8% return, you will have around $1.7 million by 65.