Many IRA fund managers argue that investors should invest at the beginning of the year rather than at the end. What is the difference to an investor who invests $2,000 per year at 11 percent over a 30-year period?

Question

Quizplus · Accepted Answer

Investing at the beginning of the year allows the investment to compound for an additional year each time, leading to a larger total amount due to the effect of compound interest.

Many IRA Fund Managers Argue That Investors Should Invest at the Beginning