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"Scugog's Community Newspaper of Choice" 12- PORT PERRY STAR - Tuesday, March 9, 1993 ad Ing the total donation to the museum $910. Kim Harper, mu- Seum curator/director, happily accepted the donation on Friday morning. The Star and the museum wish to thank all those who donated to this worthy cause. You've probably heard someone tell you to make your money work for you. There's a way of doing just that and it's called compounding. The short-term benefits of compounding are admittedly limited. The long-term benefits, however, can be dramatic. If you invested $100 on the first business day of each month for 10 years at 10% interest compounded monthly, you accumulate $20,655, including your principal of $12,000. If you invested the same amount at 15% interest, the total investment would be worth $27,866, a difference of $7211. But imagine investing that $100 over a longer period. After 20 years, your principal investment of $24,000, earning 10% compounded monthly, would be worth $76,570. Your $100 a month invested over 30 years would earn $227,933, a substantial increase. Extend that over 40 years and your money would grow to $637,687. Combine a higher interest rate with your investment and the effects of compounding are markedly greater. For example, if you invested your money at 15% over 40 years, you would have eamed a staggering $3.1 million. Those five additional percentage points mean a difference of $2.5 million! Compounding is money multiplying itself. Investors earn interest on their interest. Interest payments grow each year because the amount upon which the payments are based grow each yegr, too. Let's suppose you invest $1,000 at 12%. At the completion of the first year, your investment is worth $1,120, including the $120 in interest. After two years, your investment will have grown another 12%, or $134.40. Your investment is now worth $1,254.40. After three years, your investment will be worth $1,404.92, including interest of $150.52. As you can see, your interest payments have grown steadily. A handy tool for measuring the growth of your investment is the "rule of 72". Simply divide the number 72 by the annual interest rate your investment will earn and the result will tell you how many years it will take for your investment to double. For example, if you invested $1,000 at 10%, your investment will double in 7.2 years (72/10 = 7.2). Invest the same amount at 15% and it will double in 4.8 years (72/15 = 4.8). These examples illustrate that the two most important factors when making an investment decision are time and rate of return. The Jonger you allow your investment to grow and the greater the rate of return, the larger the future value of your investment will be. You've seen the dramatic difference between a 10-year and 20-year investment and what can happen when the rate of return is appreciably higher within the same period. In the past, you might have put your money in term deposits or guaranteed investment certificates because they provided guaranteed returns and a low risk factor. As an alternative, you might want to consider mutual funds, like those managed by Trimark Investment Management Inc. In addition to professional management and JULIA DEMPSEY/ PORT PERRY STAR Saving up for the past Port Perry Star readers generously dug into their pockets to help the newspaper raise much-needed funds for the Scugog Shores Museum Village. Donations ranged from $1 to $100. Star publisher Peter Hvidsten matched the $455 collected, mak- said. Power Of Compounding Nominated in two film categories A Port Perry man was award- ed the coveted Gemini Award in an awards ceremony in Toronto Friday evening. Bill Goddard, a freelance film editor, won the award in the Best Picture Editing in a Come- dy, Variety or Performing Arts Program category for the show "Country Gold." The winning program was a three-hour documentary which aired on CBC in February, 1992. "It was a tough category as I was up against Kids in the Hall and Cirque de Soleil," he said. Mr. Goddard said he had judged the awards in other years and therefore knew how tough the competition would be. "It really feels good. I've been doing it (film editing) for a long time and getting it for a Canadi- an show was really good," he He was also nominated for an award in the Best Picture Edit- ing in a Dramatic Program or Series. diversification, they offer historically higher returns. Remember to have patience, to allow your money to work for you. , The cumulative effect of compounding can work wonders for your - investment and your peace of mind. If you're saving for retirement, your children's education or perhaps a dream vacation, choose an investment that will work hardest for you and give them time to grow. The longer you delay, the harder your money will have to work for you. Speak to a professional financial planner and discover the benefits of compounding. You won't be disappainted. VP of EDS HOw DO YOU MANAGE TO CHOOSE THE RIGHT RSP INVESTMENT? 3 J ATRIMARK MUTUAL FUNDS Your unit value and investment return will fluctuate. Important information about any mutual fund 1s contained in 1ts simplified prospectus Read your prospectus carefully before investing You can obtain one from ROBERT GOW Richardson Greenshields 111 Simcoe St. N., Oshawa 434-6161 RICHARDSON GREENSHIELDS EE ------------ Investment advisors to Canadian enterprise and enterprising Canadians WE MANAGE. TO OUTPERFORM. Designed by Trimark Investment Management Inc Goddard wins Gemini 0K x SCOTT ANDERSON / PORT PERRY STAR Bill Goddard, a resident of Port Perry, was presented with a Gemini Award for flim editing during an awards ceremony in Toronto. See story for detalls. Man named RAN F i Scugog Island resident Steve Fralick was named to the posi- tion of vice-president, Technolo- gy, for EDS Canada, recently. Mr. Fralick has more than 25 years experience with the com- pany. He has played a leader- ship role in the planning and im- plementation of a wide variety of technical solutions helping EDS customers achieve thei business goals. EDS Canada is a wholly- owned independent subsidiary of Electronic Data Systems Corp. ELEGANT EFFICIENT & ENVIRONMENTALLY FRIENDLY Opel 2000 OVER RIDGE RETAIL 60 VanEdward Dr. Port Perry, Ontario 985-0715