WorksheetsPF 2.2 Quiz
Total questions: 16
Worksheet time: 9mins
The rule for doubling your money is called the Rule of...
(a)
Which of these is the correct formula for estimating the doubling of your money?
Rate * Years = 84
Rate * Years = 72
Principal * Rate = 72
Principal * Rate = 84
If you invested money, it would grow faster if your interest was...
simple interest
compound interest
zero interest
Simple Interest
Interest on Principal
Interest on Interest
Interest on Time
A = P+1(r)^t
Compound Interest
Interest on Principal
Interest on Interest
Interest on Time
A = P+1(r)^t
This graph shows...
Simple Interest
Compound Interest
The Principal-Time Theory
The Principle of Creative Destruction
This graph shows...
Simple Interest
Compound Interest
The Principal-Time Theory
The Principle of Creative Destruction
What is Amortization?
the process of gradually paying off a debt over time
a rise in prices, which can be translated as the decline of purchasing power over time.
a reduction of the general level of prices in an economy
the process of borrowing money from a lender given the number of assets you have
How long will it take your money to double if you save $1,000 at a 9% interest rate?
8 years
7 years
6 years
5 years
How long will it take your money to double if you save $1,000 at a 12% interest rate?
8 years
7 years
6 years
5 years
You have $1,000 and want to double it.
What interest rate do you need to earn over a 10-year time period?
8.5%
7.2%
5.6%
4.8%
You have $1,000 and want to double it.
What interest rate do you need to earn over a 15-year time period?
8.5%
7.2%
5.6%
4.8%
You determine that you can double your money every 10 years.
You have $1,000.
How much money will you have in 30 years?
(Remember how compound interest works.)
$3,000
$4,000
$6,000
$8,000
$16,000
You determine that you can double your money every 10 years.
You have $1,000.
How much money will you have in 50 years?
(Remember how compound interest works.)
$5,000
$10,000
$32,000
$50,000
$108,000
Which of the following are true about credit cards?
(Pick one "A" answer and one "B" answer.)
(A) When you make a minimum payment, you pay mostly interest and very little principal
(A) When you make a minimum payment, you will likely have your balance paid off in less than a year
(B) Credit cards use compound interest
(B) Credit cards use simple interest
The idea of compounding works in other areas of life, like learning, networking, and technology, not just finances.
True
False
