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In the Ben & Arthur story, why did Ben's savings outperform Arthur's even though Arthur deposited more money than Ben?

A) Arthur just didn't have enough time to catch up with Ben, even though he invested a considerable amount more than his brother.
B) Ben started investing earlier Both Ben and Arthur are getting the same interest rate
C) both a & b
D) None

1 Answer

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Ben's earlier start in investing (Option B) and the subsequent advantage of compounding over time (Option A) were key factors in the outperformance of Ben's savings in the story. Here option C is correct.

In the Ben & Arthur story, the reason Ben's savings outperformed Arthur's, despite Arthur depositing more money, can be attributed to both options A and B. The primary factor is that Ben started investing earlier, allowing his money more time to grow through the power of compounding.

Option A, stating that Arthur didn't have enough time to catch up with Ben, highlights the significance of the time factor in investment growth. Compounding works more effectively over longer periods, and Ben, having started earlier, had a head start in accumulating returns on his investments.

Option B, indicating that Ben started investing earlier and both Ben and Arthur received the same interest rate, underscores the importance of the timing of investment initiation. Even if they were earning the same interest rate, Ben's early start gave his investments a crucial advantage in terms of compounding over time. Here option C is correct.

User Antonin Hildebrand
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