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Practice Questions
The Miracle of Compounding Practice Questions
1. Imagine you saved $2,000 when you were 15 years old and invested this money in a retirement fund. Assuming this investment grows at a 7% annual rate of return, approximately how much money will you have at 65 years old?
*
a. $8,000.
b. $16,000.
c. $32,000.
d. $64,000.
e. $128,000.
2. Samantha invests $20,000 when she is 23 years old. The investment earns a 5% annual rate of return. Billy invests $30,000 when he is 45 years old at a 7% annual rate of return. Who has more money at 65?
*
a. Samantha.
b. Billy.
c. They make the same amount.
3. Approximately how much more?
*
a. $0.
b. $5,000.
c. $20,000.
d. $40,000.
4. Suppose you invest $15,000 in a retirement fund when you’re 35 years old. Approximately how much more money will you have at 65 years old if you invest in a fund that earns a 7% annual rate of return instead of a 5% rate of return?
*
a. $25,000.
b. $50,000.
c. $100,000.
d. $150,000.
e. Over $200,000.
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Money Skills
Course
(10 videos)
Investing
How Expert Are Expert Stock Pickers?
Practice Questions
Can You Beat the Market?
Practice Questions
Investing: Why You Should Diversify
Practice Questions
Who Is More Rational? You or the Market?
Practice Questions
Real Estate
Econ Duel: Rent or Buy?
(Coming Soon) Real Estate
Career
The Economics of Choosing the Right Career
Practice Questions
(Coming Soon) Navigating Career-Related Data
Practice Questions
Saving
The Miracle of Compound Returns
Practice Questions
(Coming Soon) Simple Saving Tips
