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For example that at age 12 you received $500 in a raffle. Instead of using that $500 to buy a game console and games, you put that money in a financial savings account that earned 5 % curiosity. In actuality, that interest charge will fluctuate over time, however for our purposes, as an instance it stays a continuing 5 p.c. At the end of five years, you’ll have $638.14. At age 25, you will have nearly double your preliminary funding: $942.82. By the point you might be 40, that $500 would have was $1,960.06.
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