How much more will an investment of $10,000 earning 8% compounded annually be worth after 25 years than after 20 years? Calculate the difference in dollars and as a percentage of the smaller maturity value.

Compounded Annually

The annual computation of interest that adds together the original investment and the previously earned interest.

Maturity Value

The amount payable to an investor at the end of a fixed term investment, including the principal and the interest.

Investment

Allocation of resources, such as time, money, or effort, in the expectation of generating an income or profit.