All Courses > Stocks > 100
Stocks 102: Make Compound Interest Work for You

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
To find out the rate of interest that you would need to double your investment in a certain number of years, _______.
Choose wisely. There is only one correct answer.
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.
2.
The _______ you invest your money, the _______ compounding can work for you.
Choose wisely. There is only one correct answer.
Earlier / More. Compounding expands your money greatly over time.
3.
The longer an investment is allowed to compound interest, the higher its return will be.
Choose wisely. There is only one correct answer.
True. Although time wont affect the actual rate of return, the return itself will grow, and it will grow much larger than it would from simple interest.
4.
Interest paid on savings accounts and bonds is generally taxable.
Choose wisely. There is only one correct answer.
True. Interest paid on savings accounts and bonds is generally taxable.
5.
Which of the following is used in the formula for determining compounded interest?
Choose wisely. There is only one correct answer.
All of the above. Principal, rate of return, and time periods are used in the compounding formula.