Investing, Schooling, Retirement, Math

Which of the below is an employer based retirement plan that both employees and employers contribute to?

• Traditional IRA

• Roth IRA

• 401K

• Pension

What is the difference between a Traditional and Roth IRA?

• A traditional IRA's contributions are not taxed until you withdraw them at retirement. A Roth IRA's your contributions are taxed when you invest.

• A Roth IRA's contributions are not taxed until you withdraw them at retirement. A Traditional IRA your contributions are taxed when you invest them in.

Which type of account will your employer often "match" your contributions?

• Traditional IRA

• 401K

• Roth IRA

• Pension

What does tax deferred mean?

• You pay taxes when you put the money into the account and when you withdraw it.

• You pay taxes now when you contribute to your account.

• You pay taxes at a later date when the money is withdrawn.

What type of account allows for instant diversification?

• mutual fund

• stock

• bond

A bond is a(n) _____________ instrument.

• Equity

• Debt

A stock is a(n) _________ instrument.

• Equity

• Debt

Payments made to shareholders of a company's stock are called?

• coupon

• interest

• dividend

If Ralph invest $1000 dollars at 6% interest, how long will it take him to double his money?

• 21

• 12

• 6

• 24

Tags

CCSS.HSF.LE.A.4

Saul put $1500 in his savings account at 4.5% interest. 6 years later, how much interest has he earned?

• $45

• $405

• $40,500