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Magical compounding interest

World’s Richest Man Warren Buffet start his first investment in stock when he was 11 years old and said he started too late!

This is some simple illustration of how this magical money machine works below:-

Jane age 25 invest RM2,000 per year compounded annually at 8% for 8 years until she is 32 years old.For the next 25 years, until she is 57, Jane invest not one ringgit more.

Peter age 33 in order to catch up with Jane’s  need to invest RM2,000 every year for 25 years!

Jane vs Peter
Jane invest (RM) Total (RM) Age Peter invest(RM) Total(RM)
                   2,000.00                                          2,160.00 25 0 0
                   2,000.00                                          4,332.80 26 0 0
                   2,000.00                                          6,679.42 27 0 0
                   2,000.00                                          9,213.78 28 0 0
                   2,000.00                                        11,950.88 29 0 0
                   2,000.00                                        14,906.95 30 0 0
                   2,000.00                                        18,099.51 31 0 0
                   2,000.00                                        21,547.47 32 0 0
                                –                                        23,271.26 33                  2,000.00                   2,160.00
                                –                                        25,132.97 34                  2,000.00                   4,332.80
                                –                                        27,143.60 35                  2,000.00                   6,679.42
                                –                                        29,315.09 36                  2,000.00                   9,213.78
                                –                                        31,660.30 37                  2,000.00                11,950.88
                                –                                        34,193.12 38                  2,000.00                14,906.95
                                –                                        36,928.57 39                  2,000.00                18,099.51
                                –                                        39,882.86 40                  2,000.00                21,547.47
                                –                                        43,073.49 41                  2,000.00                25,271.26
                                –                                        46,519.37 42                  2,000.00                29,292.97
                                –                                        50,240.91 43                  2,000.00                33,636.40
                                –                                        54,260.19 44                  2,000.00                38,327.32
                                –                                        58,601.00 45                  2,000.00                43,393.50
                                –                                        63,289.08 46                  2,000.00                48,864.98
                                –                                        68,352.21 47                  2,000.00                54,774.18
                                –                                        73,820.39 48                  2,000.00                61,156.11
                                –                                        79,726.02 49                  2,000.00                68,048.60
                                –                                        86,104.10 50                  2,000.00                75,492.49
                                –                                        92,992.43 51                  2,000.00                83,531.89
                                –                                      100,431.82 52                  2,000.00                92,214.44
                                –                                      108,466.37 53                  2,000.00              101,591.60
                                –                                      117,143.68 54                  2,000.00              111,718.92
                                –                                      126,515.17 55                  2,000.00              122,656.44
                                –                                      136,636.38 56                  2,000.00              134,468.95
                       –                       147,567.29 57        2,000.00   147,226.47