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Total Invested: $10,000

Interest Earned: $351,635.99

Total Amount: $361,635.99

# data[].attributes.body
Total Invested: $35,000

Interest Earned: $137,316.80

Total Amount: $172,316.80

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There are a few differences between the two investment strategies. Option one had the person invest a lump sum at age 20 for 45 years. That lump sum was compounded monthly at 8%. Option two had the person invest later for only 35 years. The investments were yearly increments of $1,000 and were only compounded annually at 8%. In conclusion, it makes sense why an investment compounded monthly for a longer period earns more in the long run.

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Start investing early!!!