If you invest $4,000 per year over the next 40 years for retirement,which of the following is correct?

Question

Quizplus · Accepted Answer

A high rate of return will give you the highest total dollar return over the 40-year period. This is due to the power of compounding, where the returns earned in one year are reinvested to earn more returns in the subsequent years. Therefore, a higher rate of return will result in more compounded growth and a higher total dollar return over time.

If You Invest $4,000 Per Year Over the Next 40