Question

One of the potential benefits of investing early for retirement is that an investor can receive...

One of the potential benefits of investing early for retirement is that an investor can receive greater benefits from the compounding of interest.

True

False

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

This given statement is TRUE as when an investor invest during his early age, he will gain maximum from the the effect of compounding on his investments as there would be more time left for his retirement and the possibility of maximization on those values is significantly higher.

The earlier an investor invest for retirement, the maximum is the possibility of maximization of overall return through compounding effect of time value of money.

Hence the given statement is TRUE.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which of the following statements concerning Social Security is/are correct? Worker's entitled to retirement benefits can...
Which of the following statements concerning Social Security is/are correct? Worker's entitled to retirement benefits can currently take early retirement benefits as early as age 55 if they are separated from service. A worker who takes early retirement benefits will receive a reduced benefit because he or she is expected to receive more monthly benefit payments, as payments commence earlier than if the worker had waited and retired at full retirement age. 1 only. 2 only. Both 1 and 2....
Jack’s Social Security Normal Retirement Age is 67. If he chooses to receive Social Security retirement...
Jack’s Social Security Normal Retirement Age is 67. If he chooses to receive Social Security retirement benefits early beginning at age 62, and his normal age retirement Primary Insurance Amount (PIA) is $2,000, how much can Jack expect to receive as a monthly retirement benefit?
What benefits can an entrepreneur receive from better time management?
What benefits can an entrepreneur receive from better time management?
Which of the following statements is FALSE? Select one: a. In a tax-optimal capital structure, the...
Which of the following statements is FALSE? Select one: a. In a tax-optimal capital structure, the level of interest payments depends on the level of EBIT. b. The amount of money an investor will pay for a security ultimately depends on the benefits the investor will receive—namely, the cash flows the investor will receive before all taxes have been paid. c. To determine the true tax benefit of leverage, we need to evaluate the combined effect of both corporate and...
You expect to receive $15,000 at graduation in one year. You plan on investing it at...
You expect to receive $15,000 at graduation in one year. You plan on investing it at 9 percent until you have $60,000. How long will you wait from now?
1- Which of the following statements is not true? a.The maximum possible retirement benefit from a...
1- Which of the following statements is not true? a.The maximum possible retirement benefit from a DBPP depends on the maximum allowable years of service. b.The maximum possible retirement benefit from a DCPP is the same as for a DBPP. c.There is no maximum benefit for DCPP. 2- Henry’s company provides him with a defined contribution pension plan. The maximumamount of pension he can receive for each year of service is: a.2% p.a. times his YMPE b.2% p.a. times his...
You inherit $527,000. You can receive the $527,000 in one lump sum payment today or, alternatively,...
You inherit $527,000. You can receive the $527,000 in one lump sum payment today or, alternatively, receive two amounts: $327,000 in 7 months and $220,000 in 21 months from today. If you can earn 5.5% per annum compounding monthly on your monies, what is the value of the option to receive two payments
If $12,000 is borrowed at 7.8% interest to be paid back over five years, the third...
If $12,000 is borrowed at 7.8% interest to be paid back over five years, the third year’s interest payment is $775.82 and principal amount of the same year is $2,386.52. True / False 6. Investments in infrastructure assets that are to be constructed are referred to as greenfield investments. In general, investing in greenfield investments provides stable cash flows and relatively high yields, but offers little potential for growth. True / False 7. If the discount (or interest) rate is...
You inherit $545,000. You can receive the $545,000 in one lump sum payment today or, alternatively,...
You inherit $545,000. You can receive the $545,000 in one lump sum payment today or, alternatively, receive two amounts: $345,000 in 10 months and $220,000 in 21 months from today. If you can earn 11.6% per annum compounding monthly on your monies, what is the value of the option to receive two payments (in present day value)?
What information can a potential investor obtain from the cash flows from operating activities section of...
What information can a potential investor obtain from the cash flows from operating activities section of the statement of cash flows?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT