The Oskaloosa herald. (Oskaloosa, Mahaska County, Iowa) 1885-1919, 1911-12-21

Put out at per cent compound
interest, a dollar grows in even more
surprising fashion. 1t becomes 50 in
twelve years; So in nineteen years;
81 in twenty-four years; IS ip less /
than twenty-eight years; So in thirty
one years. and more than 81 in thirty
Ifonr years. In two years more it
grows to $S.l4. In thirty-eight years
It becomes $9.15. BY the time your
dollar has been at interest forty years
at this rate, it has grown out of all
recognition. ..
. when money is compounded pro-
gressively-that is, when given
amount is added each year-the re.
suit is amazing. If you put one dollar
in bank each year at 4 per cent
compound interest, in ten years you
have $12.4S; in fifteen years $500:
in tewnty years, $30.96; in twenty
five years, $42.Sl; in thirty years(
$55.OS; in thirty-flve years $76.59; and
in forty years you have $98.S2. Thus
the $40 that you have contributed,
dollar year, has become nearly
800. At 5 per cent year deposit of
81 will bring you 1920 in ten years;
$33.n in twenty years; $69.76 in thir.
ty years, and in forty years your say.
ings will be $126.S4. Compounded at
per cent your dollar will amount In
ten, twenty, thirty and forty years
to these sums respectively: 1887,
$3S.99; $3.50; and $164.04.
systematic Saving.
From these figures it is evident
that the day of small things Is not to
be despised. 1t Is not what a man
earns, but what he saves that makes
for financial Independence princi'
pie enumerated by Benjamin Frank.
lin, who said, IF you would wealthy
be- think of saving as we'll as of get.
ting The average man lives Ger.
tain number of years. He needs
certain yearly incom to live on. Why
not figure out what principal is need.
ed to produce that income, divide the
sum necessary by the number of years
you can probably work or desire to
work, and faithfully save the allotted
sum year after year?
Suppose you save cents the
price of one carfare-every day. That
is $3.50 a month, or SIS year. Put
out at per cent compound interest
would amount in ten years to $224.64.
In twenty years the depositor would
have $5572S. In thirty years his say.
| ings would amount to $1,049.76. And
| by the time he had been saving his
cents daily for forty years his ac-
cumulations would be $1,77S.76. The
sum that he had actually saved would
be forty times $1S or 1920. Hence his
interest would amount 10 more than.
! the principal saved.
Suppose you saved daily the price
of cigar-1O cents. That amounts
to SO month, or sac year. At
per cent compound interest, such a
saving would amount in ten years to
$449.2S; in twenty years to $1,114.56;
in thirty years to $2,099.52, and in
forty years to $3,557.52.
by saving 81 week. which is a
trife less than Is cents a day, you
would have at the end of ten years
$64S.96; at the end of twenty years.
$1,609.92; at the end of thirty years,
$3,032.64, and in forty years $5,13S.64.
Gould the householder save IS a
week or $3.50 year, his savings
would in ten years amount to 1924.
80; in twenty years to $S,049.60: in
thirty years to SIS, 1920, and in forty
years they would have reached the
splendid total of $25, $500. The same
same sum compounded at per cent
would amount in forty years. to $780,.
97S.40, while put out at 6 per cent
compound interest. this saving of SIS
week would bring the owner In
forty years the sum of $42,650.4O."