Quiz – Savings Growth Power

Question 1 of 6

1. Question

Simple interest earns returns on:

Only your initial deposit

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Interest plus principal combined

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Nothing at all

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Your outstanding debts

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Question 2 of 6

2. Question

Why is compound interest so powerful?

It ignores the passage of time

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Interest begins earning interest on itself

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It only works for banks

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It reduces your balance

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Question 3 of 6

3. Question

Who is quoted calling compound interest the eighth wonder of the world?

Albert Einstein

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Richard Thaler

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Elizabeth Warren

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Dave Ramsey

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Question 4 of 6

4. Question

With 1000 dollars at 5 percent simple interest, the yearly gain is:

5 dollars

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50 dollars

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500 dollars

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100 dollars

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Question 5 of 6

5. Question

Match each term to its description.

Sort elements

Return only on the initial deposit
Interest earning more interest
Your greatest asset in growth
Maximizes the compounding effect

Simple interest

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Compound interest

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Time	Correct Incorrect Correct answer

Starting early

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Question 6 of 6

6. Question

Fill in the blanks.

Simple interest is earned only on your initial Fill in the blank 1 of 3 , while Fill in the blank 2 of 3 interest earns interest on itself, so starting Fill in the blank 3 of 3 builds the most wealth.