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Question 10

Small differences in fees compound over long periods and can materially change final outcomes. Consider a $10,000 investment held for 30 years: a 7.00% annual return versus a 6.50% annual return may look close on an annual basis, but the gap widens as returns compound. Understanding the numeric impact helps you appreciate why choosing lower-fee funds can matter for long-term goals. This question asks you to compare future values given the two net return rates.

If you invest $10,000 for 30 years, which pair of values (rounded to cents) correctly shows the future values at 7.00% vs 6.50% annual returns?

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By Wise Wallet

Diversification reduces company-specific risk but cannot eliminate overall market risk.