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What two elements do you need to build wealth through compound growth?

A)Savings and spending
B)Income and expenses
C)Time and a positive rate of return
D)Debt and investments

1 Answer

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Final answer:

To build wealth through compound growth, you need time and a positive rate of return to allow your savings to grow exponentially due to compound interest.

Step-by-step explanation:

The two elements you need to build wealth through compound growth are Time and a positive rate of return. This can be understood as option C) Time and a positive rate of return. Starting to save money early in life and investing it wisely to harness the power of compound interest is crucial. The formula for how financial savings grows over time includes an original starting amount, a percentage increase over time (interest rate), and the amount of time the money is invested. Compound interest, which is interest earned on past interest, dramatically increases your savings over time and emphasizes the importance of time to allow your investments to grow.

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