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You and your statistics-major friend are curious how much rate of returns and compounding impacts an investment over the course of someone’s career

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You and your statistics-major friend are curious how much rate of returns and compounding impacts an investment over the course of someone’s career. What is the difference in retirement savings if you invest $100 at the end of each month and earn a 8% return (compounded monthly), and if you invested $1,200 at the end of each year and earned 7% (compounded annually)? Both are for a duration of 50 years.

• $274,458

• $298,476

• $301,478

• $305,338

• $253,436