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 higher rate of return will result in a higher total dollar return over the 40-year period. This is due to compounding, where the returns on your investments also earn returns. The longer your money is invested, the more time it has to compound and grow. Therefore, it is important to choose investments that have a good potential for high returns over the long term.

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