Question:
❓If you invested $100,000 for 20 years, which of these would give you the biggest return?
A) 7% return every year for 20 years
B) 10% for the first 5 years, then 4% for 15 years
C) 4% for the first 15 years, then 10% for the final 5
D) They’d all end up with the same amount
Answer:
✅ A) 7% return every year for 20 years
A steady 7% every year wins—it ends at $386,968 on a $100,000 investment, while both up-and-down patterns land near $290,000.
A few hot years can’t make up for many slow ones. Here’s the 20-year math on $100,000:
| Return pattern | Value after 20 years |
|---|---|
| 7% every year | $386,968 |
| 10% for 5 years, then 4% for 15 | $290,044 |
| 4% for 15 years, then 10% for 5 | $290,044 |
Options B and C only average about 5.5% a year, so they land near $290,000 no matter which order the good years come in. What builds wealth isn’t a flashy return for a few years—it’s a solid return you actually earn across all of them.
See how steady growth compounds over time—try the compound interest calculator.
