Savings Accounts Basics

The money you save is called your __________ .

• assets

• investments

• savings

• wealth

The cost __________ of a decision is the same as the benefits of the choice that i given up when one decision is made instead of another.

• absolute

• beneficial

• net

• opportunity

The percentage increase in the value of your savings from earned interest is the __________.

• interest rate

• rate of return

• return factor

• savings ratio

Experts recommend that people set aside at least __________ of income for emergencies.

• three months

• six months

• twelve months

• eighteen months

Some personal finance experts suggest people should try to save __________.

• 10 percent of take-home pay

• 12 percent of gross pay

• $100 per month

• a nickel of every dollar you earn

Interest earned only on the money deposited into a savings account is called __________.

• easy interest

• principal interest

• simple interest

• straight interest

Interest earned on the principal and any interest earned on the principal is __________.

• combination interest

• complex interest

• composite interest

• compound interest

Using the rule of 72, you could expect to double your investment in __________ if the interest rate is eight percent.

• 9 months

• 9 years

• 48 months

• 48 years

You save $100 per month in an account paying 5 percent interest. In 10 years you have approximately $15,500 in the account. The interest earned is about __________.

• $600

• $1,550

• $3,500

• $5,500

If you put $500 in a savings account today and the account pays 10 percent interest annually, one year from now your account would contain __________.

• about $500

• close to $550

• more than $600

• more than $1000