Savings

The power of compound interest works BEST the longer an investment is allowed to grow

• True
• False

A savings account should be used for daily purchases

• True
• False

With compound interest what increases year after year

• Nothing
• The Interest rate
• The principal amount getting the interest rate
• Both the interest rate and principal amount
  

Interest paid periodically and paid on the principal plus interest earned.

• Simple Interest
• Compound Interest
• Hard Interest
• Double Interest

Money paid to you by a financial institution when you deposit funds there.

• Allowance
• Income
• Interest
• Tips

Tags

CCSS.7.RP.A.3

A portion of your income that you do not spend on your current needs, but instead set aside for future needs.

• Collateral
• Discretionary Income
• Savings
• Net Worth

A quick way to estimate the amount of time it will take for your money to double when placed in a savings account at a given interest rate. 72 divided by interest rate.

• Rule of 27
• Rule of Doubles
• 20/10 Rule
• Rule of 72

You take out a loan for $175,000. Which option will cost you less?

A) Simple Interest rate of 4.17% over 15 years

B) Compound Interest rate of 3.5% over 15 years

• Option A

• Option B

• they are both equal

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.SSE.A.1

CCSS.HSF.LE.A.1

Put money into a bank account.

• withdraw
• deposit
• cash
• cheque

What is it?

• savings account
• cheque
• loonie
• nickel