Compound Interest
Given the formula for finding compound interest, what does the "t" represent?
A. Initial amount B. Interest Rate
C. Number of years
D. Number of times compounded per year
C. Number of Years
Once you have paid off all your debt, and you have a $500 emergency fund, you should.....
A. Start building wealth B. Invest in stocks
C. Pay for health insurance
D. Create a miscellaneous fund
A. Start building wealth
Paul works as a salesman at a furniture store. He earns 5% for every piece of furniture that he sells. What type of income is this?
A. Commission B. Wages
C. Salary D. Dividend
A. Commission
The money you earn hourly for your time and effort at work is called your _______.
A. Salary B. Minimum wage
C. Wages D. Income tax
C. Wages
Collecting tips as a server in a restaurant is what type of income?
A. Passive B. Portfolio
C. Commission D. Earned
D. Earned
Given the formula for finding compound interest, what does the "n" represent?
A. Initial amount B. Interest Rate
C. Number of years
D. Number of times compounded per year
D. Number of times compounded per year
________ is interest earned on top of interest.
A. High returns B. Profit sharing
C. Accrued Interest D. Compound interest
Receiving money for your birthday is what type of income?
A. Passive B. Earned
C. Portfolio D. Commission
A. Passive
A fixed, annual rate of pay that doesn't change by working more or fewer hours is called ________.
A. Salary b. Wage
C. Passive Income D. Commission
A. Salary
Earning money off of stocks is what type of income?
A. Passive B. Portfolio
C. Earned D. Commission
B. Portfolio
Given the formula for finding compound interest, what does the "P" represent?
A. Initial amount B. Interest rate
C. Amount earned D. Points
A. Initial amount
The only place you should keep your emergency fund money is.....
A. A Roth IRA B. Stock market
C. A savings account D. Friends house
C. Savings account
You invested $5,000 in the stock market and earned $500 off of your investment. What type of income is this?
A. Passive B. Portfolio
C. Commission D. Earned
B. Portfolio
It is your best friend's birthday and you forgot to buy a gift. You did not budget for your friend's gift this month. Is this considered a financial emergency that requires you to withdraw from your emergency fund?
A. Yes B. No
B. No
Creating a mobile app and collecting money every time someone downloads it is what type of income?
A. Passive B. Earned
C. Portfolio D. Commission
A. Passive
Given the formula for finding compound interest, how should you represent an interest rate of 11%?
A. 1.1 B. 0.011
C. 11.0 D. 0.11
D. 0.11
Renting out property or selling content on a blog are examples of ________.
A. Passive income B. Active income
C. Salary D. Portfolio income
A. Passive Income
Collecting money from mowing lawns in your neighborhood is an example of what type of income?
A. Earned B. Commission
C. Salary D. Passive
A. Earned
The interest rate on a savings account determines.....
A. how much money you need to open an account
B. How quickly your money will grow over time.
B. How quickly your money will grow over time.
Collecting rent on rental property that you own is what type of income?
A. Passive B. Earned
C. Commission D. Portfolio
A. Passive
Given the formula for finding compound interest, how should you represent an interest rate of 2.25%
A. 0.025 B. 0.00225
C. 0.0225 D. 0.225
C. 0.0225
Which is a habit that is most important for building wealth and becoming a millionaire?
A. Paying off credit card
B. Working a high paying job
C. Consistently investing money
C. Consistently investing money
House sitting for your neighbors who are on vacation is an example of what type of income?
A. Portfolio B. Earned
C. Passive D. Commission
C. Passive
The first step you should take when you want to make a large purchase is....
A. Ask your parents for money
B. Get a credit card
C. Decide how much you need and how much time you have to save it
C. Decide how much you need and how much time you have to save it.
Investing money in your friend's business is what type of income?
A. Portfolio B. Earned
C. Passive D. Commission
C. Passive