Rule of 72
If you have an account with a 3.1% interest rate. How long will it take to double your money?
23.23 years
How can you avoid paying interest on your credit card?
By paying back the money you spent at the end of the month without waiting.
George has an older house, he wants to save money from his paycheck every month for unexpected emergencies when he needs to take the money out right away. What account is best for his needs?
Savings Account
What is a simple interest?
Simple Interest is based on the starting amount of a loan or deposit.
What does FDIC stand for?
Federal Deposit Insurance Corporation
If Bob has a Money Market Mutual Fund with a 11.3% interest rate, how long will it take for him to double his money
6.37 years
What is the scale for the minimum to maximum possible credit score?
300-850
What are the 4 types of savings accounts?
Savings, CD(Certificate of Deposit), Money Market and Savings EE Bond.
Simple Interest
You get a student loan. Find the interest on the loan if you are borrowing $2,000 at 8% for 1 year.
$160
What is the max the FDIC will insure your bank account for?
Up to $250,000
Jordan has a $3,000 balance on her card. The card has an annual percentage rate of 18%. If she makes no payments on her card and no late fees are charged, how long will it take her debt to double?
4 years
What are the 3 types of credit cards?
General Purpose
Store Cards
Charge Cards
Rob is saving to purchase a house, the purchase won't take place for atleast a year. What savings type is best for him?
CD
Simple Interest
You get a house loan. Find the interest if you borrow $150,000 at 11% for 1 year.
$16,500
What are things the FDIC doesn't cover?
Stocks, Bonds, Mutual Funds, and Life Insurance.
How many times will a $100,000 investment, earning 2% interest double from age 3 to age 39?
What will the investment be worth
What is the range of credit score you would need for a loan?
About 550 and up.
Harry is a college student who just inherited some money. He would like to have access to that money to pay his college expenses, but would like to maximize the earning potential before he uses it. What type of account is best for him?
Money Market
What is compound interest?
Compound Interest is based on the starting amount and the interest that accumulates overtime.
Who sets the prime rate of interest?
The FED
How many times will a $40,000 investment, earning 8% interest, double from age 25 to age 52. What will the investment be worth?
It will double 3 times and will be worth $320,000
What are 3 of the 5 factors which determine your credit score?
Payment history, your level of debt, your credit history age, types of credit on your report, and number of credit inquiries.
Jody's sister just had a baby. He would like to give a gift that would help her with future college expenses. What type of savings account should he give here.
Compound Interest
How much money would you earn with $100 in a bank account with a 10% interest rate that compounded quarterly.
$110.38
What is the FED?
The central bank of the United States.