Fill in the Blanks (Reading & Writing)

Choose the word that best fits each blank.

Compound interest is one of the most powerful ideas in personal finance. When money is invested, it earns a return; but in the following period that return itself also earns a return, so the savings grow faster and faster over time. The longer the money is left untouched, the more dramatic this effect becomes, which is why financial advisers often urge young people to begin saving as early as possible.

With compound interest, the returns earned in one period go on to earn further returns themselves, so savings grow more quickly the —longerlaterfewer the money is left invested, rewarding those who start —earlyslowlyrarely.