Numerical answer
The four sentences below, when properly sequenced, form a coherent paragraph. Decide on the correct order and key in the sequence of numbers as your answer.
1. Yet compound interest, working patiently over decades rather than years, will eventually overtake almost any linear rate of saving, however large.
2. Most people, when asked to guess how much a modest sum invested young will grow to by retirement, badly underestimate the final figure.
3. This systematic underestimation has a name among behavioural economists: exponential growth bias, the tendency of the human mind to intuitively treat compounding processes as if they grew in a straight line.
4. The bias helps explain why so many people delay saving for retirement, since a slow, unglamorous linear-looking curve in its early years fails to convey the explosive growth it will later produce.
1. Yet compound interest, working patiently over decades rather than years, will eventually overtake almost any linear rate of saving, however large.
2. Most people, when asked to guess how much a modest sum invested young will grow to by retirement, badly underestimate the final figure.
3. This systematic underestimation has a name among behavioural economists: exponential growth bias, the tendency of the human mind to intuitively treat compounding processes as if they grew in a straight line.
4. The bias helps explain why so many people delay saving for retirement, since a slow, unglamorous linear-looking curve in its early years fails to convey the explosive growth it will later produce.
Show answer and solution
Answer: 2314
Sentence 2 opens with the general observation (people underestimate compound growth), which sentence 3 then names and explains ("this systematic underestimation has a name"). Sentence 1 elaborates on the actual mechanics of compound interest overtaking linear growth, providing the mechanism, and sentence 4 draws out the real-world consequence (delayed retirement saving) as a natural closing point. The order is 2-3-1-4.
Saved on this device. Sign in or create a free account to keep it on every device.