Compound interest & Kiwisaver

Change 6.5% to a decimal

• .65

• 6.5

• .065

• .065%

What is compound interest?

• Interest on interest

• Interest on savings

• Interest on compounds

• Interest on spending

What did Einstein say about compound interest?

• Those who know about it dont need to use it

• Those who dont understand it dont use it

• Those who dont understand it, it gets used against them

• Those who understand it use it to their benefit

If I have $200 interest in the first year of a two year investment

• The 2nd years interest will always be higher

• The 2nd years interest will always be lower

• I will have less capital overall

• I will turn it into a longer investment to earn more interest

If I invested $1000 at an interest rate of 4.5% over 1 year, taking into account inflation at 3%, in real terms, I would have:

• $1,045

• $1,000

• Less than $1,045 but more than $1,000

• More than $1,045

Would a 2 year investment interest rate at a bank, generally be:

• Higher than a 5 year rate

• Lower than a 5 year rate

• The same

• lower than a 1 year rate

NZ's retirement age is

• 66

• 68

• 60

• 65

What is Kiwisaver generally?

• A retirement savings system

• A emergency fund

• A Nz'er who can save

• A retirement savings bank

What is kiwibank?

• A retirement savings system

• A retirement savings bank only

• A privately run bank

• A state-owned bank

How much would a single person 70 years old, living alone receive through superannuation in NZ?

• Approx $300 per week

• Approx $400 per week

• Depends on wether they deserve it or not

• NZ doesnt have a superannuation scheme