College
What is the main benefit of going to college?
To get a high paying job
What is a share?
Unit of ownership of a company
what is the difference between simple and compound interest?
Simple interest is calculated only on the principal amount, and compound interest is calculated on the principal plus previously accumulated interest. Compound interest grows faster.
what is the percentage of money you need to pay back on a loan called?
interest rate
what equation would you use to find out the amount of time you need to take a loan out for?
loan length formula
What is it called when you borrow money for college?
student loans
How risky are stocks?
High-risk
name one high-risk form of investment
Stocks, crypto, etc.
How can you improve your credit score?
paying loans on time
how much percent do you need for your front-end ratio?
under 28%
What economic term describes the income you give up when you go to college instead of going directly to the workforce?
opportunity costs
Define volatility
how quickly stock price changes
a certificate of depost (CD) is an example of what type of account?
a CD is a low-risk savings account
how do loans work?
a lender gives you money, which you pay back
what is an amortization table used for?
tracking your monthly payments and amount left on a mortgage
What financial measure is used to evaluate whether the lifetime earning from college exceeds the total cost
return on investment
who is the majority share holder?
the person/company who owns more than 50%
what type of savings account has a fixed interest rate based off the the market that continuously earns interest and can be accessed anytime?
high-yield savings account
what are two reasons you might need a loan?
housing and schooling
how much percent of your income should go towards housing?
30%
What is the term for the point where the benefits of college reach the total cost paid
break-even point
What influences the change of stock prices?
Supply and demand: more buyers means stock prices go up
what is the difference between continuous and annual compounding?
With continuous, it compounds infinitely and with annual, it compounds yearly.
what is a good credit score?
700-900
What is the benefit of buying a house over renting?
owning property becomes an asset