THE POWER OF COMPOUND INTEREST

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Albert Einstein said that the most powerful force in the universe is compound interest.
"He who understands it, earns it ... he who doesn't ... pays it.
Following is a table that shows how the habit of saving regularly yields good returns in the long run. The earlier you start, the better.
The example below shows a monthly allowance of P2,200 or P100/day. You may plug in your own monthly allowance if you wish.
The assumed savings rate is 20%; annual allowance increase is 10% per year and interest rate of 12% per year.
You may also plug in your own values for these to show your child what he/she can accumulate.
Monthly Allowance
Monthly Savings Rate
Annual Allowance Increase
Interest Rate
MONTH
0
1
2
3
4
5
6
7
8
9
10
11

DEPOSITS
5,000.00
440.00
440.00
440.00
440.00
440.00
440.00
440.00
440.00
440.00
440.00
440.00

Note: If you start this habit once your children are born,
they can have a million pesos in their teens.

2,200.00
20%
10%
12%
INTEREST
50.00
54.90
59.85
64.85
69.90
74.99
80.14
85.35
90.60
95.91
101.26

BALANCE
5,000.00
5,490.00
5,984.90
6,484.75
6,989.60
7,499.49
8,014.49
8,534.63
9,059.98
9,590.58
10,126.48
10,667.75

12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50

484.00
484.00
484.00
484.00
484.00
484.00
484.00
484.00
484.00
484.00
484.00
484.00
532.40
532.40
532.40
532.40
532.40
532.40
532.40
532.40
532.40
532.40
532.40
532.40
585.64
585.64
585.64
585.64
585.64
585.64
585.64
585.64
585.64
585.64
585.64
585.64
644.20
644.20
644.20

106.68
112.58
118.55
124.58
130.66
136.81
143.02
149.29
155.62
162.02
168.48
175.00
181.59
188.73
195.94
203.22
210.58
218.01
225.51
233.09
240.75
248.48
256.29
264.18
272.14
280.72
289.38
298.13
306.97
315.90
324.91
334.02
343.21
352.50
361.88
371.36
380.93
391.18
401.54

11,258.43
11,855.01
12,457.56
13,066.14
13,680.80
14,301.61
14,928.62
15,561.91
16,201.53
16,847.54
17,500.02
18,159.02
18,873.01
19,594.14
20,322.48
21,058.10
21,801.09
22,551.50
23,309.41
24,074.91
24,848.05
25,628.94
26,417.62
27,214.20
28,071.98
28,938.34
29,813.37
30,697.14
31,589.75
32,491.29
33,401.84
34,321.50
35,250.35
36,188.50
37,136.02
38,093.02
39,118.16
40,153.54
41,199.28

YOUR CASH AFTER 1 YEAR

YOUR CASH AFTER 2 YEARS

YOUR CASH AFTER 3 YEARS

YOUR CASH AFTER 4 YEARS

51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89

644.20
644.20
644.20
644.20
644.20
644.20
644.20
644.20
644.20
708.62
708.62
708.62
708.62
708.62
708.62
708.62
708.62
708.62
708.62
708.62
708.62
779.49
779.49
779.49
779.49
779.49
779.49
779.49
779.49
779.49
779.49
779.49
779.49
857.44
857.44
857.44
857.44
857.44
857.44

411.99
422.55
433.22
444.00
454.88
465.87
476.97
488.18
499.51
510.94
523.14
535.46
547.90
560.46
573.15
585.97
598.92
611.99
625.20
638.54
652.01
665.61
680.07
694.66
709.40
724.29
739.33
754.52
769.86
785.35
801.00
816.80
832.77
848.89
865.95
883.19
900.59
918.17
935.93

42,255.48
43,322.24
44,399.66
45,487.87
46,586.95
47,697.02
48,818.20
49,950.58
51,094.29
52,313.86 YOUR CASH AFTER 5 YEARS
53,545.62
54,789.70
56,046.22
57,315.31
58,597.09
59,891.68
61,199.22
62,519.84
63,853.66
65,200.83
66,561.46
68,006.56 YOUR CASH AFTER 6 YEARS
69,466.11
70,940.26
72,429.15
73,932.93
75,451.74
76,985.75
78,535.09
80,099.93
81,680.42
83,276.71
84,888.96
86,595.29 YOUR CASH AFTER 7 YEARS
88,318.67
90,059.30
91,817.33
93,592.93
95,386.30

90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128

857.44
857.44
857.44
857.44
857.44
857.44
943.18
943.18
943.18
943.18
943.18
943.18
943.18
943.18
943.18
943.18
943.18
943.18
1,037.50
1,037.50
1,037.50
1,037.50
1,037.50
1,037.50
1,037.50
1,037.50
1,037.50
1,037.50
1,037.50
1,037.50
1,141.25
1,141.25
1,141.25
1,141.25
1,141.25
1,141.25
1,141.25
1,141.25
1,141.25

953.86
971.98
990.27
1,008.75
1,027.41
1,046.26
1,065.29
1,085.38
1,105.66
1,126.15
1,146.85
1,167.75
1,188.86
1,210.18
1,231.71
1,253.46
1,275.43
1,297.61
1,320.02
1,343.59
1,367.41
1,391.45
1,415.74
1,440.28
1,465.05
1,490.08
1,515.36
1,540.88
1,566.67
1,592.71
1,619.01
1,646.61
1,674.49
1,702.65
1,731.09
1,759.81
1,788.82
1,818.12
1,847.72

97,197.60
99,027.01
100,874.71
102,740.90
104,625.74
106,529.43
108,537.91 YOUR CASH AFTER 8 YEARS
110,566.47
112,615.31
114,684.64
116,774.67
118,885.59
121,017.63
123,170.98
125,345.87
127,542.51
129,761.11
132,001.90
134,359.42 YOUR CASH AFTER 9 YEARS
136,740.51
139,145.41
141,574.37
144,027.61
146,505.38
149,007.93
151,535.51
154,088.36
156,666.74
159,270.90
161,901.11
164,661.37 YOUR CASH AFTER 10 YEARS
167,449.23
170,264.97
173,108.86
175,981.20
178,882.26
181,812.33
184,771.70
187,760.66

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130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167

1,141.25
1,141.25
1,141.25
1,255.37
1,255.37
1,255.37
1,255.37
1,255.37
1,255.37
1,255.37
1,255.37
1,255.37
1,255.37
1,255.37
1,255.37
1,380.91
1,380.91
1,380.91
1,380.91
1,380.91
1,380.91
1,380.91
1,380.91
1,380.91
1,380.91
1,380.91
1,380.91
1,519.00
1,519.00
1,519.00
1,519.00
1,519.00
1,519.00
1,519.00
1,519.00
1,519.00
1,519.00
1,519.00
1,519.00

1,877.61
1,907.80
1,938.29
1,969.08
2,001.33
2,033.89
2,066.78
2,100.01
2,133.56
2,167.45
2,201.68
2,236.25
2,271.16
2,306.43
2,342.05
2,378.02
2,415.61
2,453.58
2,491.92
2,530.65
2,569.77
2,609.27
2,649.17
2,689.47
2,730.18
2,771.29
2,812.81
2,854.75
2,898.49
2,942.66
2,987.28
3,032.34
3,077.85
3,123.82
3,170.25
3,217.14
3,264.50
3,312.34
3,360.65

190,779.51
193,828.55
196,908.09
200,132.54 YOUR CASH AFTER 11 YEARS
203,389.24
206,678.50
210,000.66
213,356.03
216,744.96
220,167.79
223,624.84
227,116.45
230,642.99
234,204.79
237,802.21
241,561.14 YOUR CASH AFTER 12 YEARS
245,357.66
249,192.15
253,064.98
256,976.53
260,927.21
264,917.39
268,947.47
273,017.85
277,128.94
281,281.14
285,474.86
289,848.61 YOUR CASH AFTER 13 YEARS
294,266.09
298,727.75
303,234.03
307,785.37
312,382.22
317,025.04
321,714.29
326,450.44
331,233.94
336,065.28
340,944.93

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169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
205
206

1,670.90
1,670.90
1,670.90
1,670.90
1,670.90
1,670.90
1,670.90
1,670.90
1,670.90
1,670.90
1,670.90
1,670.90
1,837.99
1,837.99
1,837.99
1,837.99
1,837.99
1,837.99
1,837.99
1,837.99
1,837.99
1,837.99
1,837.99
1,837.99
2,021.79
2,021.79
2,021.79
2,021.79
2,021.79
2,021.79
2,021.79
2,021.79
2,021.79
2,021.79
2,021.79
2,021.79
2,223.97
2,223.97
2,223.97

3,409.45
3,460.25
3,511.56
3,563.39
3,615.73
3,668.60
3,721.99
3,775.92
3,830.39
3,885.40
3,940.97
3,997.08
4,053.76
4,112.68
4,172.19
4,232.29
4,292.99
4,354.30
4,416.23
4,478.77
4,541.94
4,605.74
4,670.17
4,735.25
4,800.99
4,869.21
4,938.12
5,007.72
5,078.02
5,149.02
5,220.72
5,293.15
5,366.30
5,440.18
5,514.80
5,590.17
5,666.29
5,745.19
5,824.88

346,025.28
351,156.43
356,338.90
361,573.18
366,859.81
372,199.31
377,592.20
383,039.03
388,540.32
394,096.62
399,708.48
405,376.47
411,268.22
417,218.89
423,229.07
429,299.35
435,430.33
441,622.63
447,876.84
454,193.60
460,573.52
467,017.25
473,525.41
480,098.65
486,921.43
493,812.43
500,772.34
507,801.85
514,901.66
522,072.47
529,314.98
536,629.92
544,018.00
551,479.97
559,016.56
566,628.51
574,518.77
582,487.92
590,536.77

YOUR CASH AFTER 14 YEARS

YOUR CASH AFTER 15 YEARS

YOUR CASH AFTER 16 YEARS

YOUR CASH AFTER 17 YEARS

207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
241
242
243
244
245

2,223.97
2,223.97
2,223.97
2,223.97
2,223.97
2,223.97
2,223.97
2,223.97
2,223.97
2,446.36
6,320.05
6,320.05
6,320.05
6,320.05
6,320.05
6,320.05
6,320.05
6,320.05
6,320.05
6,320.05
6,320.05
6,952.05
7,701.50
7,701.50
7,701.50
7,701.50
7,701.50
7,701.50
7,701.50
7,701.50
7,701.50
7,701.50
7,701.50
8,471.65
9,586.21
9,586.21
9,586.21
9,586.21
9,586.21

5,905.37
5,986.66
6,068.77
6,151.69
6,235.45
6,320.05
6,405.49
6,491.78
6,578.94
6,666.97
6,758.10
6,888.88
7,020.97
7,154.38
7,289.13
7,425.22
7,562.67
7,701.50
7,841.71
7,983.33
8,126.36
8,270.83
8,423.06
8,584.30
8,747.16
8,911.65
9,077.78
9,245.57
9,415.04
9,586.21
9,759.08
9,933.69
10,110.04
10,288.16
10,475.75
10,676.37
10,879.00
11,083.65
11,290.35

598,666.10
606,876.73
615,169.46
623,545.12
632,004.54
640,548.56
649,178.01
657,893.75
666,696.66
675,809.99 YOUR CASH AFTER 18 YEARS
688,888.13
702,097.06
715,438.08
728,912.50
742,521.67
756,266.94
770,149.65
784,171.19
798,332.95
812,636.33
827,082.73
842,305.61 YOUR CASH AFTER 19 YEARS
858,430.16
874,715.96
891,164.62
907,777.76
924,557.03
941,504.10
958,620.64
975,908.34
993,368.92
1,011,004.11
1,028,815.65
1,047,575.45 YOUR CASH AFTER 20 YEARS
1,067,637.41
1,087,899.99
1,108,365.20
1,129,035.05
1,149,911.61

246
247
248
249
250
251
252
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
273
274
275
276
277
278
279
280
281
282
283
284

9,586.21
9,586.21
9,586.21
9,586.21
9,586.21
9,586.21
10,544.83
11,922.93
11,922.93
11,922.93
11,922.93
11,922.93
11,922.93
11,922.93
11,922.93
11,922.93
11,922.93
11,922.93
13,115.22
14,829.67
14,829.67
14,829.67
14,829.67
14,829.67
14,829.67
14,829.67
14,829.67
14,829.67
14,829.67
14,829.67
16,312.63
18,445.03
18,445.03
18,445.03
18,445.03
18,445.03
18,445.03
18,445.03
18,445.03

11,499.12
11,709.97
11,922.93
12,138.02
12,355.26
12,574.68
12,796.29
13,029.70
13,279.23
13,531.25
13,785.79
14,042.88
14,302.53
14,564.79
14,829.67
15,097.19
15,367.39
15,640.30
15,915.93
16,206.24
16,516.60
16,830.06
17,146.66
17,466.42
17,789.38
18,115.57
18,445.03
18,777.77
19,113.85
19,453.28
19,796.11
20,157.20
20,543.22
20,933.10
21,326.89
21,724.61
22,126.30
22,532.01
22,941.79

1,170,996.93
1,192,293.11
1,213,802.25
1,235,526.48
1,257,467.95
1,279,628.83
1,302,969.95 YOUR CASH AFTER 21 YEARS
1,327,922.58
1,353,124.74
1,378,578.91
1,404,287.63
1,430,253.44
1,456,478.91
1,482,966.63
1,509,719.22
1,536,739.35
1,564,029.67
1,591,592.90
1,620,624.05 YOUR CASH AFTER 22 YEARS
1,651,659.96
1,683,006.23
1,714,665.95
1,746,642.28
1,778,938.37
1,811,557.42
1,844,502.66
1,877,777.35
1,911,384.79
1,945,328.31
1,979,611.26
2,015,720.00 YOUR CASH AFTER 23 YEARS
2,054,322.23
2,093,310.48
2,132,688.61
2,172,460.52
2,212,630.15
2,253,201.48
2,294,178.52
2,335,565.33

285
286
287
288
289
290
291
292
293
294
295
296
297
298
299
300

18,445.03
18,445.03
18,445.03
20,289.53
22,941.79
22,941.79
22,941.79
22,941.79
22,941.79
22,941.79
22,941.79
22,941.79
22,941.79
22,941.79
22,941.79
25,235.96

23,355.65
23,773.66
24,195.85
24,622.26
25,071.37
25,551.51
26,036.44
26,526.22
27,020.90
27,520.53
28,025.15
28,534.82
29,049.59
29,569.50
30,094.61
30,624.98

2,377,366.01
2,419,584.70
2,462,225.57
2,507,137.36 YOUR CASH AFTER 24 YEARS
2,555,150.52
2,603,643.81
2,652,622.03
2,702,090.04
2,752,052.72
2,802,515.04
2,853,481.97
2,904,958.58
2,956,949.95
3,009,461.23
3,062,497.63
3,118,358.57 YOUR CASH AFTER 25 YEARS

u start, the better.

allowance if you wish.