The text discusses the topic of compounding over a large number of com

The text discusses the topic of compounding over a large number of compounding periods. To illustrate, it shows that $1,000 invested at 8% for 40 years (annual compounding) grows to $21,724.

But if you could earn 10% instead of 8%, you would earn ________ more at the end of 40 years.
A)

$4,431
B)

25 percent
C)

$23,535
D)

$1,250

ANSWER

C