Compounding

Compounding

Assessment

Flashcard

Life Skills

11th - 12th Grade

Practice Problem

Hard

Created by

Wayground Content

FREE Resource

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14 questions

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1.

FLASHCARD QUESTION

Front

A key difference between saving and investing is

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Back

Saving is for emergencies & goals, investing is for long-term wealth

2.

FLASHCARD QUESTION

Front

Why is compound interest more advantageous than simple interest?

Back

In compound interest, you earn interest on not only your principal, but also on the interest you’ve already made.

3.

FLASHCARD QUESTION

Front

How often does semiannual compounding occur?

Back

Twice a year

4.

FLASHCARD QUESTION

Front

When an account compounds quarterly, how often does interest get applied?

Back

Every 3 months

5.

FLASHCARD QUESTION

Front

Making choices between saving and investing depends on these two factors: Your time horizon and when you will need access to the money

Back

Your time horizon and when you will need access to the money

6.

FLASHCARD QUESTION

Front

Why is it important to start investing as soon as possible?

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Back

You have more time for your money to compound

7.

FLASHCARD QUESTION

Front

The Rule of 72 is used to find how long it will take for

Back

investments to double

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