Final answer:
The statement Rate of return matters when it comes to compound interest is true.
Step-by-step explanation:
The statement Rate of return matters when it comes to compound interest is true.
Compound interest is the concept of earning interest on both the initial principal and the accumulated interest. The rate of return is the percentage at which the invested amount grows over time. Higher rates of return lead to greater compound interest.
For example, if you invest $1000 at a 5% interest rate, your investment will grow to $1050 after one year. However, if you invest the same amount at a higher 10% interest rate, your investment will grow to $1100 after one year. This demonstrates that the rate of return directly impacts the amount of compound interest earned.