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1.
The _______ you invest your money, the _______ compounding can work for you.
Earlier / More. Compounding expands your money greatly over time.
2.
To find out the rate of interest that you would need to double your investment in a certain number of years, _______.
Divide 72 by the number of years. To find out the rate of interest you will need to double your investment in a certain amount of years, divide 72 by the number of years.
3.
The amount of money you invest is called _______.
Principal. The invested amount of money is called principal.
4.
The Rule of 72 states that if you divide 72 by a given interest rate, you will learn how many years it will take for an investment to double. How long would it take for an investment with an interest rate of 4% to double?
18 years. Dividing 72 by 4 gives you 18.
5.
Interest paid on savings accounts and bonds is generally taxable.
True. Interest paid on savings accounts and bonds is generally taxable.
