Question: This week we want to analyze the growth differences between Simple Interest and Compound Interest. Let's imagine the following scenario: On your 18th birthday, you

This week we want to analyze the growth differences between Simple Interest and Compound Interest.

Let's imagine the following scenario:

On your 18th birthday, you decide to put $6000 into a Roth IRA (Individual Retirement Account). You do not touch it until your 65th birthday, which is when you retire. You never contribute any more money to this account.

During the time period, it has grown on average 7% each year. The investment type you chose has interest compounded annually. How much money will you have in this account at retirement?

If it were instead governed by simple interest, with everything else staying the same, how much money would you have?

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