Compound Interest
The chart to the left shows how compound interest at various rates would increase Lynne's savings compared with simply putting the money in a shoebox. This is compound interest that you earn. And as you can see from an investment, compounding has a greater effect after the investment and interest have increased over a longer period.
Source
Boundless vets and curates high-quality, openly licensed content from around the Internet. This particular resource used the following sources:
Federal Reserve Bank of Dallas.
http://www.dallasfed.org/assets/documents/cd/wealth/wealth.pdf
Public domain.