Basics Beginner: Make Compound Interest Work for You

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1.
Interest paid on savings accounts and bonds is generally taxable.
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True. Interest paid on savings accounts and bonds is generally taxable.
2.
To find out the rate of interest that you would need to double your investment in a certain number of years, _______.
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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 _______.
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Principal. The invested amount of money is called principal.
4.
Which of the following is used in the formula for determining compounded interest?
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All of the above. Principal, rate of return, and time periods are used in the compounding formula.
5.
The _______ you invest your money, the _______ compounding can work for you.
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Earlier / More. Compounding expands your money greatly over time.