FA-5.1 - 5.3: Investing Review

It is meant for short-term goals

• Saving

• Investing

It involves assets like stocks and bonds

• Saving

• Investing

It harnesses compound interest and higher average returns to grow your wealth faster

• Saving

• Investing

It involves very little risk

• Saving

• Investing

Your account balance will be impacted by the market

• Saving

• Investing

When price levels increase, purchasing power ____.

In addition to the price of goods and services, what else is impacted by inflation?

(Select all that apply.)

• Wages

• Savings

• Debts

• Interest

If you put money in a savings account earning a rate of return of 1% and inflation is currently at a rate of 2%, your money will be worth ____.

• more in the future.

• less in the future.

• exactly the same.

Every time Pinocchio lies, his nose doubles in size.  His nose is 1.5 inches long before he has told any lies.

Calculate how many inches Pinocchio’s nose will be after 4 lies.

You make a $10,000 investment that has historically doubled every 7 years.

Calculate the value of your investments after 12 years.

(Round your answer to the nearest hundredth. Include punctuation as needed.)