Small differences in growth rates don't lead to large overall differences in income over time.

Question

Quizplus · Accepted Answer

Small differences in growth rates can compound over time and lead to significant differences in income. Even a few percentage points difference can result in thousands or even millions of dollars difference in the long run, especially when compounded over decades or generations. This is known as the power of compounding.

Small Differences in Growth Rates Don't Lead to Large Overall