what will happen to the interest income of a 401(k) the longer you have the plan? a. the interest income…

what will happen to the interest income of a 401(k) the longer you have the plan? a. the interest income will be compounded more. b. the interest income will stay the same. c. the interest income will double. d. the interest income will go down over time.

what will happen to the interest income of a 401(k) the longer you have the plan? a. the interest income will be compounded more. b. the interest income will stay the same. c. the interest income will double. d. the interest income will go down over time.

Answer

Brief Explanations:

In a 401(k) plan, with more time, the interest income has more compound - ing periods. Compounding means that interest is earned on both the principal and previously earned interest. So, the longer the time, the more compounding occurs.

Answer:

A. The interest income will be compounded more.