Year 1: $200,000 * 1.10 = $220,000.

Fri, 01 May 2026 02:04:30 +0000

Understanding Financial Growth: The Simple Power of 10% Annual Growth In personal finance, small changes can have meaningful impacts over time. One powerful example is compound growth — mathematically illustrated by the equation:
$200,000 × 1.10 = $220,000 This equation reveals a straightforward reality: investing $200,000 with a 10% annual growth rate results in a modest but significant increase to $220,000 after just one year. ### Why This Dollar Increase Matters