Toggle sidebar menu
Learn Economics
Teach High School
Teach University
About Us
We're Hiring
My Account
Contact Us
Join Our Community of Econ Nerds
Follow us
Learn Economics
Search
Courses
See all
Principles of Economics: Microeconomics
Principles of Economics: Macroeconomics
Mastering Econometrics
Money Skills
Development Economics
Series
See all
Everyday Economics
Nobel Conversations
Economists in the Wild
Women in Economics
Econ Duel
Interactive Practice
See all
Supply and Demand
GDP
Trade
Inflation
Teach Economics
Timely News Articles for Econ Class
We scour the news and send you a weekly email packed with resources that you can use in your class.
Learn More
Free High School Teacher Trainings
Teaching techniques, resources, and professional development credit! Everything you need to make economics fun and engaging for your students.
Learn More
Learn about our mission
High School Teaching Resources
See all
By Course:
High School Economics
AP Microeconomics
AP Macroeconomics
Personal Finance
By Type:
Unit Plans
Lesson Plans
Interactive Practice
Assessments
University Teaching Resources
See all
By Course:
Principles of Microeconomics
Principles of Macroeconomics
Mastering Econometrics
Development Economics
By Type:
Assessments
Interactive Practice
Lesson Plans
Assignments
Contact Us
My Account
Toggle mobile search form
Search
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.
Submit
Skip to Next Lesson
Back to video
Submit
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
Saving
The Miracle of Compound Returns
Practice Questions
(Coming Soon) Simple Saving Tips
