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Compounding Q&A Quick Test Question #1: If you invest $50 per month @ 8% for 30 years, you could end up with $74,518. To reach this same $74,518 goal in only 20 years (assuming the same rate of return), you would need to invest: A. $42 per month B. $65 per month C. $101 per month D. $127 per month Question #2: Bill, who is age 25, wants to start saving for retirement. To benefit most from the "Magic" of Compounding, he should: A. Start a retirement fund at his local bank in a passbook account. B. Start contributing $50 a month (or more) to his tax-qualified plan, and increase contributions as often as possible. C. Start contributing to his tax-qualified plan at age 40 but make up the difference by contributing $100 a month. D. Buy that big screen TV on sale now, and sell it a year from now at a profit which can be applied toward his retirement fund. < PREVIOUS NEXT > #38599