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Unit 2 Part I: Financial House and Rule of 72

Total questions: 21

Worksheet time: 21mins

Name
Class
Date
1.

Samuel and his friends Mason, Priya, and Arjun are curious about their fixed deposit investments. What is the Rule of 72 primarily used for when they want to see their money grow?

a)

Calculating the time it takes for a population to double

b)

Determining the time it takes for their investment to double at a fixed annual interest rate

c)

Estimating the annual growth rate of their investment

d)

Calculating the exact interest earned on their investment over a year

2.

Abigail and Harper are curious about how quickly their savings can grow! If Priya tells them about the Rule of 72 for estimating how long it takes for money to double in a savings account with a fixed interest rate, how can they use this rule to figure out the number of years it will take for their investment to double?

a)

72 / interest rate = years to double

b)

Interest rate / 72 = years to double

c)

72 * interest rate = years to double

d)

Interest rate * 72 = years to double

3.

Ethan, Samuel, and Aiden are competing to see whose savings will double first! Ethan starts with $1,000 in a savings account that earns 6% interest per year. Using the Rule of 72, can you help Ethan figure out approximately how many years it will take for his investment to double?

a)

6 years

b)

12 years

c)

18 years

d)

24 years

4.

Jackson, Aiden, and Abigail are learning about the Rule of 72 in their finance class. Which of the following is NOT a direct application of the Rule of 72?

a)

Estimating how long it takes for a country's GDP to double

b)

Calculating the time it takes for inflation to halve the value of money

c)

Determining the number of years it takes for a bond's value to double

d)

Predicting the exact date of stock market crashes

5.

Imagine Ava and Jackson are curious about how quickly their savings could double just by earning interest! The Rule of 72 is a handy trick for this. What else can you use the Rule of 72 to calculate?

a)

The time it takes for a loan to double in amount due to interest

b)

The exact amount of interest earned on an investment in one year

c)

The number of times interest is compounded in a year

d)

The annual inflation rate based on price increase

6.

Kai and Mia are competing to see whose savings will double first! If Kai invests $1,000 in a savings account with a 9% annual interest rate, use the Rule of 72 to estimate how many years it will take for his investment to double. Who will win the race to double their money?

a)

6 years

b)

8 years

c)

10 years

d)

18 years

7.

Charlotte and her friends Liam, Abigail, and Benjamin are curious about how quickly their investments can double. When Charlotte uses the Rule of 72 to estimate this, why is it considered a rule of thumb rather than an exact calculation?

a)

It only applies to investments made in the stock market

b)

It uses an approximation to simplify complex compound interest calculations

c)

It can only be used for interest rates between 1% and 12%

d)

It was created before the invention of calculators and computers

8.

Scarlett, Avery, and Rohan are on a quest to see who can double their savings the fastest! In which type of educational curriculum would they discover the Rule of 72 to help them with their calculations?

a)

History

b)

Science

c)

Mathematics

d)

Literature

9.

Hannah, Noah, and Kai are having a friendly competition to see who can double their savings the fastest! Hannah suggests using the Rule of 72 to estimate how long it will take. What mathematical concept is the Rule of 72 based on to provide these estimates?

a)

Simple interest

b)

Compound interest

c)

Arithmetic progression

d)

Geometric progression

10.

Abigail, Michael, and Evelyn are teaming up to tackle their finances! They've discovered a clever way to shrink their debt faster. What is this popular method called?

a)

Debt Stacking/Snowball

b)

Pay yourself first

c)

Is not how much you make, but how much you keep.

d)

Credit card statements

11.

Ava, Anika, and Aria are building their very own financial house! As they climb up to the second floor, which Baby Step do they find there? Can you help them figure it out?

a)

Baby step 1

b)

Baby step 2

c)

Baby step 3

d)

Baby step 7

12.

Anika and Michael are chatting about life insurance options. Anika says, "I'm thinking about a policy that's permanent, has cash value, level premiums, and fixed death benefits." Michael wonders what type of life insurance she's talking about. Can you help them figure it out?

a)

Whole Life Insurance

b)

Term Life Insurance

c)

Burial Insurance

d)

Survivorship Life Insurance

13.

Ava and James just bought their dream home and a shiny new car! With their new mortgage and car loan, they're exploring insurance options. Ava wants something budget-friendly for now, since she only needs coverage while her loans are active. Which insurance would be the best fit for her situation?

a)

Term Insurance

b)

Whole Life Insurance

14.

Ethan and Abigail are discussing life insurance options. Ethan says, "I want a policy that builds up cash value over time!" Which type of insurance is Ethan talking about?

a)

Term Insurance

b)

Whole Life Insurance

15.

Emma and Michael are chatting about ways to protect their family's future. Emma suggests a policy that only lasts for a set time, like one, five, or ten years. What type of insurance is she talking about?

a)

Term Insurance

b)

Whole Life Insurance

16.

Isla and Henry are chatting about insurance options for young professionals. Isla says, "Hey Henry, did you know that for someone like Mia, premiums are usually way cheaper for one type of policy compared to cash-value policies?" Which type of insurance is Isla talking about?

a)

Term Insurance

b)

Whole Life Insurance

17.

Frank, Lily, and Kai are dreaming of early retirement! What’s the very first thing they need to figure out to start their journey?

a)

Financial Independence Number

b)

Debt Ration Number

c)

Financial Insecurity Number

d)

Debt Freedom Date

18.

DEBT:

Imagine Mason, Grace, and Evelyn are faced with a surprise $500 emergency. Over ___% of Americans, just like them, would have to rely on debt to cover it! Source: Federal Reserve, Yahoo Finance (2025)

a)

20

b)

30

c)

40

d)

50

19.

Luna, Nora, and Ava are chatting about why so many people struggle with their finances. Can you guess what the biggest reasons are that 95% end up failing?

a)

No Financial Education

b)

No Financial Game Plan

c)

No Financial Coach (Advisor)

d)

All 3

20.

Imagine Benjamin, Samuel, and Priya are chatting about life insurance. According to the Theory of Decreasing Responsibility, whose needs should Benjamin's life insurance coverage reflect?

a)

his bank account

b)

his hopes and dreams

c)

his family responsibilities

d)

keeping up with the Joneses

21.

Mason and Anika are discussing smart money moves. Mason says, " (a)   term and invest the difference!" Can you help Anika fill in the blank?