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 $3,000 per year with the annual contribution being increased by 10% per year (cumulative contributions of $99,567) you are able to accumulate $176,305 over 15 years. Compound interest makes up $76,737 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 @ 10.00%</th><th scope="col">Interest @ 8.00%</th><th scope="col">Ending Balance</th></tr><tr><td role="rowheader" scope="row">1</td><td>$4,250</td><td>$3,000</td><td>$580</td><td>$7,830</td></tr><tr><td role="rowheader" scope="row">2</td><td>7,830</td><td>3,300</td><td>890</td><td>12,020</td></tr><tr><td role="rowheader" scope="row">3</td><td>12,020</td><td>3,630</td><td>1,252</td><td>16,902</td></tr><tr><td role="rowheader" scope="row">4</td><td>16,902</td><td>3,993</td><td>1,672</td><td>22,567</td></tr><tr><td role="rowheader" scope="row">5</td><td>22,567</td><td>4,392</td><td>2,157</td><td>29,116</td></tr><tr><td role="rowheader" scope="row">6</td><td>29,116</td><td>4,832</td><td>2,716</td><td>36,663</td></tr><tr><td role="rowheader" scope="row">7</td><td>36,663</td><td>5,315</td><td>3,358</td><td>45,336</td></tr><tr><td role="rowheader" scope="row">8</td><td>45,336</td><td>5,846</td><td>4,095</td><td>55,277</td></tr><tr><td role="rowheader" scope="row">9</td><td>55,277</td><td>6,431</td><td>4,937</td><td>66,645</td></tr><tr><td role="rowheader" scope="row">10</td><td>66,645</td><td>7,074</td><td>5,897</td><td>79,616</td></tr><tr><td role="rowheader" scope="row">11</td><td>79,616</td><td>7,781</td><td>6,992</td><td>94,389</td></tr><tr><td role="rowheader" scope="row">12</td><td>94,389</td><td>8,559</td><td>8,236</td><td>111,184</td></tr><tr><td role="rowheader" scope="row">13</td><td>111,184</td><td>9,415</td><td>9,648</td><td>130,247</td></tr><tr><td role="rowheader" scope="row">14</td><td>130,247</td><td>10,357</td><td>11,248</td><td>151,852</td></tr><tr><td role="rowheader" scope="row">15</td><td>151,852</td><td>11,392</td><td>13,060</td><td>176,305</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>