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

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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.

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