Why is compound interest more advantageous than simple interest?

• It’s more difficult to calculate, so fewer people use compound interest, making more profits for those who do.
• Compound interest accumulates very rapidly, so you only have to save for 3 years or fewer to earn far more money.
• Compound interest is attached to the stocks with the highest risk, so you get the highest interest on them
• In compound interest, you earn interest on not only your principal, but also on the interest you’ve already made.

A type of savings that signifies that you own a part of a corporation and a claim to their assets and earnings.

• Stock

• Share

• Dividend

• none is correct

An amount of money paid by a company regularly to it's shareholders

• Profit

• Bonds

• Dividends

• Cash back

An investment program funded by shareholders that trades in diversified

• Mutual Funds

• Dividends

• Share program

• None of the answers

The amount you earn as profit from your investment based on your deposited amount, usually expressed as a percentage

• Penalty

• Interest Rate

• Emergency Fund

• Index

The act of investing in a large variety of stocks, bonds and/or alternative investments, like gold or real estate, as a way to reduce your overall risk.

• Dividends

• Mutual Fund Investing

• Portfolio

• Diversification

The overall collection of investments held by a person.

• Fund

• Portfolio

• Savings Account

• Certificate of Deposit

A security in which the investor loans money to a company or government, then pays regular interest to the bondholder and returns the principal on the bond’s maturity date

• Index Fund

• Dividend

• Bond

• T-Note

Degree of uncertainty on how likely the investor is to make money on an investment

• Index

• Risk

• Maturity

• Penalty

A certificate issued by a bank to a person depositing money for a specified length of time.

• Mutual Fund

• Index

• Bond

• Certificate of Deposit (CD)