Personal Finance- Saving & Investing

How does interest work?

If you let the​ (a)   have your money, they will reward you with interest. This means you will ​ (b)   more money just by keeping your money in a​ (c)   account.

If you have 100 dollars and the bank offers 5% interest on a savings account, how much money will it then become?

How does interest work?

If you need to ​ (a)   money, the credit card company is happy to give you money with​ (b)   . This means you will pay back ​ more than you initially borrowed. If you are making minimal payments, it will take you a​ (c)   time to pay back the amount owed and you will pay back more than you borrowed. If you charge $500 on a ​ (d)   card and only make $10 payments each month, it will take you 57 payments over the next ​ (e)   years to pay it off and you will have paid the credit card company $61.79 in interest to borrow 500 dollars. Therefore, the total cost you paid back is $561.79.

Saving and Investing are.....

Your paycheck/income is limited! After taxes are taken out, what can you do with your limited income?

Who will be most prepared for an emergency medical expense? Johnny who saves 10% of his income. Matilda who spends all of her income. Sabrina who saves 5% of her income.

Why should you open a savings account with a bank rather than digging a hole in your yard or using a cute porcelian piggy bank to save your money?

Why do businesses make investments in capital goods such as buying machines and equipment?