Investing Review

Solve using the equation I=p x r x t. How much interest would you earn if you invested $4000 at 5% for 6 years?

• $1200

• $1500

• $400

A share of a company that you can purchase, and then sell.

• bond

• stock

• investment

Spreading your money across multiple types of investments

• investing

• diversification

• stock market

• government bonds

A government program that deducts money from your paycheck in order to pay you in your retirement

• social security

• medicare

• the stock market

Why do you need more money each year in retirement?

• you spend more as you get older

• inflation cause prices to rise

• it is less risky to have more money

How much interest would you earn if you invested $500 at 3% for 5 years?

• $50

• $75

• $100

When is the best time to start saving/investing for retirement?

• in your 40s

• after you graduate college

• as soon as possible

The LONGER your retirement, the MORE money you'll need

• True

• False

Investing allows you to earn money somewhere other than a job

• True

• False

What is the main difference between saving and investing?

• saving has risk

• investing has risk

• they are the same