Dave Ramsey Savings Unit Test

Front

What is the first thing you should save for?

Back

The first thing you should save for is not your retirement fund; it should be an emergency fund.

Tags

CCSS.RI.11-12.3

CCSS.RI.11-12.5

CCSS.RI.8.5

CCSS.RI.9-10.3

CCSS.RI.9-10.5

Front

What is Compound Interest?

Back

Interest paid on interest previously earned.

Tags

CCSS.HSF.BF.A.2

Front

Calculate the simple interest for this problem: $1,000 at 6% interest for 3 Years.

Back

$1,191.02

Tags

CCSS.7.RP.A.3

Front

What does it mean to intentionally invest money?

Back

It means to engage in Wealth Building.

Tags

CCSS.RI.7.2

CCSS.RI.8.2

CCSS.RL.11-12.2

CCSS.RL.8.1

CCSS.RL.9-10.2

Front

What is 20% written in decimal form?

Back

.2

Front

What is an emergency fund?

Back

A savings account that is set aside for unplanned expenses.

Front

What is the formula for calculating simple interest?

Back

Simple Interest = Principal x Rate x Time.

Tags

CCSS.7.RP.A.3

Front

Define 'Wealth Building'.

Back

The process of investing money to generate more money.

Front

What is the difference between simple interest and compound interest?

Back

Simple interest is calculated only on the principal amount, while compound interest is calculated on the principal plus any interest earned.

Tags

CCSS.7.RP.A.3

Front

What is a sinking fund?

Back

A savings fund established to pay off a debt or replace a large item.