Compounding interest is a powerful way to make money. Over time, it leads your investment to exponential growth. If we compare the same amount invested with and without compounding interest, we can see a big difference. Let’s see an example: – Initial deposit: $10,000 – Yearly interest rate: 10% – Monthly contribution: $100 – Number of years investing: 10 After 10 years, the balance in the investment account with compounding interest is $47,554.91. Without compounding, the balance would be $22,000.