Difference in total contributions (options 2 & 3): 8,000.00
Difference in total interest earned (options 2 & 3): 2,977.87
It is better to invest more at the beginning of the 30 years due to compounding interest over time.
I would recommend option 2, as it offers the highest final balance with a reasonable contribution amount.
option 1:
total contributions: 9,000.00
total interest earned: 6,250.50
final balance: 15,250.50
option 2:
total contributions: 9,000.00
total interest earned: 8,467.04
final balance : 17,467.04
option 3:
total contributions: 1,000.00
total interest earned: 5,489.17
final balance: 6,489.17
What is the difference between the "total contributions" in options 2 & 3?
What is the difference between the "total interest earned" in options 2 & 3?
Is it better to invest more at the beginning or at the end of the 30 years? Why?
Using the table above, which investment plan would you recommend? Why?
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