Transcript Matt and Chuck -- A little story about compounding Interest

MATT AND CHUCK
The tale of two guys and the
power of compounding interest!
18 YEARS OLD!
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Matt and Chuck just finished high
school!
It looks like they are in very good shape
because their dad’s are hooking them
up!
Matt’s dad is giving him $20,000 to put
in a savings account
Chuck’s dad is giving him $20,000 to
invest in mutual funds.
Matt’s situation is even better! His dad is
going to put another $20,000 in EACH
and EVERY year until he retires!
Who would you rather be?
10 Year Reunion
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Matt and Chuck compare
notes! Matt’s savings
account is now worth
$201,723. Chuck’s
investment has grown to
$51,875.
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Chuck is still feeling
cheated! At least he had
fun at the reunion! 
20 Year Reunion
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Once again, Matt and
Chuck have an
opportunity to catch up
and compare notes!
Matt’s savings account
is now worth a
whopping $408,466.
Chuck’s investment is
now worth $134,550!
He’s still way behind!
30 year reunion
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Wow! It’s been 30 years!
How time flies!
Matt and Chuck are reunited
once again!
Although it seemed
unnecessary, Matt and
Chuck compared notes.
Matt’s savings account is
now worth $618,922.
Chuck’s initial $20,000 is
now worth $348,988.
Chuck is still behind!
40 Year Reunion?
Retirement?
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Don’t worry, there wasn’t a 40 year reunion!
But when it was time for retirement at the
age of 65 Chuck did give Matt a call.
They ended up talking about their
graduation gifts.
After 47 years what were each of them
worth?
Matt?
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Matt’s savings
account is now
worth $986,492.
All of this came
out of his father’s
pocket, year after
year.
What about Chuck?
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His dad gave him the
initial $20,000 and
never put another
penny in the account.
What is this investment
worth after 47 years?
Chuck’s investment is
now worth an amazing
$1,763,950!
WOW!