Developing and Achieving Financial Goals

What is the definition of trade-off?

• The process of earning interest on both the original amount of money and the interest already earned

• The act of putting money, time, or effort into something with the expectation of achieving a profit

• The value of the next best alternative that you give up when making a choice

• The percentage at which a lender charges interest on a loan

What is the definition of opportunity cost?

• The act of putting money, time, or effort into something with the expectation of achieving a profit

• The percentage at which a lender charges interest on a loan

• The value of the next best alternative that you give up when making a choice

• The process of earning interest on both the original amount of money and the interest already earned

What is the definition of compounding?

• The percentage at which a lender charges interest on a loan

• The act of putting money, time, or effort into something with the expectation of achieving a profit

• The value of the next best alternative that you give up when making a choice

• The process of earning interest on both the original amount of money and the interest already earned

What are interest rates?

• The process of earning interest on both the original amount of money and the interest already earned

• The value of the next best alternative that you give up when making a choice

• The percentage at which a lender charges interest on a loan

• The act of putting money, time, or effort into something with the expectation of achieving a profit

What are investments?

• The act of putting money, time, or effort into something with the expectation of achieving a profit

• The value of the next best alternative that you give up when making a choice

• The percentage at which a lender charges interest on a loan

• The process of earning interest on both the original amount of money and the interest already earned

What is the time value of money related to?

• The value of the next best alternative that you give up when making a choice

• The process of earning interest on both the original amount of money and the interest already earned

• How money can grow over time due to interest earned

• The act of putting money, time, or effort into something with the expectation of achieving a profit

What is the impact of starting early on compounding?

• It has a negative impact on the future value of money

• It has no impact on the future value of money

• It significantly impacts the financial future

• It only impacts the future value of money slightly

What is the median weekly earnings for a person with a two-year degree?

• $1,574

• $963

• $1,334

• $1,924

What is the median weekly earnings for a person with a professional or doctoral degree?

• $1,924

• $1,574

• $1,334

• $963

What is the total earnings over a lifetime for a person with a professional or doctoral degree?

• Nearly $3 million

• $1.8 million

• Exceed $1.8 million

• Nearly $4 million