Consistent investing over a long period of time can be an effective way to accumulate wealth. So let's use it in a practical example and see how this compound interest calculator created by our team here at Eagle Pro Web using JavaScript and then a Joomla Extension, can put this savings strategy to work.
Let's assume that a 6 years old little Bella has saved $500.00 dollars from her allowances. Then Mateus, her older brother, decides to make a fixed deposit at the local Bank who promised to pay 5% annual interest rate in return, compounded monthly.
Little Bella's Father likes the idea so He decides to add periodic monthly payments of 100.00 dollars, made at the end of each month, to the savings account. If Mateus had to leave that money at the Bank for the next 13 years, at the time Bella is 19 years old, they would have saved about $22,867.42 dollars.