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? *

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? *

Practice Questions

The Miracle of Compounding Practice Questions

Investing

Real Estate

Career

Saving