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Compounding Time on Your Side The longer the time, the greater the affects of compounding. Investing $50 each month into a portfolio that earned an average of 8% a year (see Investment Types Course for historical rates of return) accumulated $74,518 over 30 years. However, this same investment program over 20 years accumulated only $29,451. What a difference!   Quick Question As you can see, by investing $50 per month over 30 years (assuming 8% average rate of return), you would accumulate $74,518. If you delayed 10 years, so that now you had 20 years to save, how much would you need to save per month to still accumulate $74,518? A. Just a little more, or $75 per month. B. Over two-and-a-half times as much, or $127 per month. C. About three times as much, or $150 per month. D. About four times as much, or $200 per month. < PREVIOUS NEXT > #38599