. ine percentage py wnicn your money grows as it is investea ev 4. The third rea

Question

. ine percentage py wnicn your money grows as it is investea ev 4. The third reason to save money; Involves Investing money long term av 5. The type of account that holds your fully funded emergency fund tun (S) CTI 6. The savings rate most Americans have (those who spend more than they make) hy 7. A fund that stores saved money so that you can purchase Items in full f 8. The number of months a fully funded emergency fund contains br 9. The amount you put into an emergency fund for Baby Step 1 g 10. The priority in which you pay yourself s) er (S) 27. Which statement is true about a one-time investment for 40 years? The interest rate does not matter as long as you leave it alone for 40 years A one-time investment returns a higher yield than continued investments The annual interest rate matters when making a one-time investment 40% @ All of the above

Explanation / Answer

Answer :

"A one-time investment returns a higher yield than continued investments" is true, because of compound interest effect.

Compound interest is the concept of adding earned or accumulated interest back to the principal amount so that interest is earned on the top of interest from that period onwards. The act of adding declared interest to be principal is called compounding.

Early lumpsum investment gets the maximum benefit of compounding effect.

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