Compound interest is the difference between the cash you contribute to an investment and the actual future value of the investment. In this case, by contributing just $45,000 per year with the annual contribution being increased by 3% per year (cumulative contributions of $2,031,934) you are able to accumulate $1.0321869E7 over 27 years. Compound interest makes up $8,289,935 of your future balance. <div id="chart1Container">Chart will load here</div> <script type="text/javascript">  </script> <ul><li><a href="inv01">How should I allocate my assets?</a></li><li><a href="inv02">Compare taxable vs. tax-free investment return</a></li><li><a href="inv03">What is the value of a bond?</a></li><li><a href="inv04">What is the return on my real estate investment?</a></li><li><a href="interest-calculator">What is the value of compound interest?</a></li><li><a href="inv06">What is the value of a call or put option?</a></li><li><a href="inv07">Taxable vs. tax-advantaged savings?</a></li><li><a href="inv08">What is my risk tolerance?</a></li><li><a href="inv09">What is the long-term impact of increased investment return?</a></li><li><a href="inv10">Certificate of deposit (CD) analyzer</a></li><li><a href="what-is-the-dividend-yield-on-a-stock">What is the dividend yield on a stock?</a></li><li><a href="inv12">How do expenses impact mutual fund returns?</a></li><li><a href="certificate-of-deposit-cd-laddering-strategy">Certificate of deposit (CD) laddering strategy</a></li><li><a href="share-certificate-analyzer">Share Certificate analyzer</a></li><li><a href="share-certificate-laddering">Share Certificate laddering strategy</a></li></ul><table class='pure-table pure-table-bordered' role='grid'><tr><th scope="col">Year</th><th scope="col">Beginning Balance</th><th scope="col">Savings @ 3.00%</th><th scope="col">Interest @ 10.00%</th><th scope="col">Ending Balance</th></tr><tr><td role="rowheader" scope="row">1</td><td>$200,000</td><td>$45,000</td><td>$24,500</td><td>$269,500</td></tr><tr><td role="rowheader" scope="row">2</td><td>269,500</td><td>46,350</td><td>31,585</td><td>347,435</td></tr><tr><td role="rowheader" scope="row">3</td><td>347,435</td><td>47,740</td><td>39,518</td><td>434,693</td></tr><tr><td role="rowheader" scope="row">4</td><td>434,693</td><td>49,173</td><td>48,387</td><td>532,252</td></tr><tr><td role="rowheader" scope="row">5</td><td>532,252</td><td>50,648</td><td>58,290</td><td>641,190</td></tr><tr><td role="rowheader" scope="row">6</td><td>641,190</td><td>52,167</td><td>69,336</td><td>762,693</td></tr><tr><td role="rowheader" scope="row">7</td><td>762,693</td><td>53,732</td><td>81,643</td><td>898,068</td></tr><tr><td role="rowheader" scope="row">8</td><td>898,068</td><td>55,344</td><td>95,341</td><td>1,048,754</td></tr><tr><td role="rowheader" scope="row">9</td><td>1,048,754</td><td>57,005</td><td>110,576</td><td>1,216,334</td></tr><tr><td role="rowheader" scope="row">10</td><td>1,216,334</td><td>58,715</td><td>127,505</td><td>1,402,554</td></tr><tr><td role="rowheader" scope="row">11</td><td>1,402,554</td><td>60,476</td><td>146,303</td><td>1,609,333</td></tr><tr><td role="rowheader" scope="row">12</td><td>1,609,333</td><td>62,291</td><td>167,162</td><td>1,838,786</td></tr><tr><td role="rowheader" scope="row">13</td><td>1,838,786</td><td>64,159</td><td>190,295</td><td>2,093,240</td></tr><tr><td role="rowheader" scope="row">14</td><td>2,093,240</td><td>66,084</td><td>215,932</td><td>2,375,256</td></tr><tr><td role="rowheader" scope="row">15</td><td>2,375,256</td><td>68,067</td><td>244,332</td><td>2,687,655</td></tr><tr><td role="rowheader" scope="row">16</td><td>2,687,655</td><td>70,109</td><td>275,776</td><td>3,033,540</td></tr><tr><td role="rowheader" scope="row">17</td><td>3,033,540</td><td>72,212</td><td>310,575</td><td>3,416,327</td></tr><tr><td role="rowheader" scope="row">18</td><td>3,416,327</td><td>74,378</td><td>349,071</td><td>3,839,776</td></tr><tr><td role="rowheader" scope="row">19</td><td>3,839,776</td><td>76,609</td><td>391,639</td><td>4,308,024</td></tr><tr><td role="rowheader" scope="row">20</td><td>4,308,024</td><td>78,908</td><td>438,693</td><td>4,825,625</td></tr><tr><td role="rowheader" scope="row">21</td><td>4,825,625</td><td>81,275</td><td>490,690</td><td>5,397,590</td></tr><tr><td role="rowheader" scope="row">22</td><td>5,397,590</td><td>83,713</td><td>548,130</td><td>6,029,433</td></tr><tr><td role="rowheader" scope="row">23</td><td>6,029,433</td><td>86,225</td><td>611,566</td><td>6,727,224</td></tr><tr><td role="rowheader" scope="row">24</td><td>6,727,224</td><td>88,811</td><td>681,604</td><td>7,497,639</td></tr><tr><td role="rowheader" scope="row">25</td><td>7,497,639</td><td>91,476</td><td>758,911</td><td>8,348,026</td></tr><tr><td role="rowheader" scope="row">26</td><td>8,348,026</td><td>94,220</td><td>844,225</td><td>9,286,471</td></tr><tr><td role="rowheader" scope="row">27</td><td>9,286,471</td><td>97,047</td><td>938,352</td><td>10,321,869</td></tr></table><span style="padding-bottom:2px;background-color:#eee;line-height:1.45em;border-bottom:1px dotted;border-top:1px dotted;"><span style="color:#81A41E;font-size:100%;font-weight:700;"> FINANCIAL PLANNERS</span> <span style="color:#000;font-size:100%;font-weight:normal;">– <a href="http://www.plannerportal.com" target="_PP_WINDOW">Affordable Financial Planning Software</a> – <a href="http://www.plannerportal.com" target="_PP_WINDOW">www.PlannerPortal.com</a></span>  </span>