Question

The advantage of compounding interest is not as beneficial for a typical 18 - 21 year old college student as it is to a typical Baby Boomer. This is because the college student has an average life expectancy of roughly 60 years, much longer than the Baby Boomer, diminishing the benefits of compounding. Group of answer choices True False

Answer 1

Answer:

False

Explanation:

Compound interest refers a process of getting interest, that increases slightly every year, on an amount of money.

Compounding interest is more beneficial to a a typical 18 - 21 year old college student, than it is to a baby boomer, because the college student has a higher life expectancy.

This is because the more time compound interest is allowed to accumulate, the higher the returns that will be gained.