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Task 4: Unit 2: Lesson 4: Compound Interest

Froggy Jumps

Test your knowledge on compound interest and how it works!

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Froggy Jumps

Task 4: Unit 2: Lesson 4: Compound InterestVersion en ligne

Test your knowledge on compound interest and how it works!

par Kristine Vester
1

What is compound interest?

2

How does compound interest grow over time?

3

Why is compound interest beneficial for savings?

4

What is the interest rate if an investor wants to double their money in 6 years?

5

Using the rule of 72, what is the doubling time for a 4% interest rate?

6

If you want to double your investment in 10 years, what interest rate do you need?

7

If you have an investment with a 9-year doubling time, what is the interest rate?

8

What is the Rule of 72 used for?

9

What is the formula for the Rule of 72?

10

What type of interest does the Rule of 72 primarily apply to?

11

What is the main benefit of using the Rule of 72?

12

What does the Rule of 72 estimate?

13

If an investment has a 6% return, how long to double?

14

What interest rate gives a doubling time of 9 years using the Rule of 72?

15

Who gets credit for inventing the Rule of 72?

16

Why is calculating the time value of money important?

17

What does inflation indicate?

18

How does inflation affect the time value of money?

19

Which of the following is a factor in calculating the time value of money?

20

What is the primary purpose of understanding the time value of money?

21

What happens to money's value over time due to inflation?

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