Had my father put $2,000 in the bank, at 6 percent interest compounded annually, he would have about $40,000 by now.

The terms of the note were that it was to accrue at 10% per year, compounded annually, until redemption.

"Now there's a follow-up rush, but it's not going to compound annually."

So far, he said, "investors have earned 20 percent compounded annually since I took control."

Thus, the new wage increase amounts to less than 5 percent per year compounded annually.

It would have been smarter to keep that $25,000 in the bank compounding annually, at, say 8 percent, over 30 years.

In the last five years, the company's net income has grown almost 34 percent, compounded annually, and its sales have risen 24.4 percent a year.

It typically provides for a 5 percent increase in benefits, compounded annually.

"Book has grown 23 percent compounded annually for the last 22 years," he said.

Imagine you invest only $1000 at normal bank interest, compounded annually.