Money and interest in the growth of money promote the study of compound interest and exponential functions. Using the formula A(n)= P(1+r)n we calculate the amount of money A(n) accumulated if P dollars are invested for n compound periods at r interest rate each period. But does the amount accumulated reflect real money growth given the effect of inflation and taxes? Examples of compound interest used in the classroom and in textbooks can be misleading. This article addresses the real growth of an investment in light of inflation and taxes.