Question

2. Which investment would earn the most money by retirement at age 65?

I. investing $5,000 in stocks at 6% return at age 25
II. investing $10,000 in bonds at 3% interest at age 35
III. investing $10,000 in stocks at 8% return at age 45

Explain the reasoning behind your answer.

Answer 1

First investment will return $54,515
Second investment will return $25,000
Third invest willment return $50,338

I think that third investment would earn the most money as it make at age 45. So 20 years difference in comparison with first investment and only about $4,000 difference in money.

So the third variant would earn the most money.