Dave Ramsey Ch 2 Saving Exam Questions and Answers

Dave Ramsey Ch 2 Saving Exam Questions and Answers Compound Interest - Answer️️ -Interest paid on interest previously earned Emergency Fund - Answer️️ -Five hundred dollars saved to be used ONLY in the event of an emergency. Interest rate - Answer️️ -% paid to a lender for the use of borrowed money or % earned on invested money. Sinking Fund - Answer️️ -Saving money over time for a specific large purchase. Inflation - Answer️️ -The persistant rise in the price of goods and services over a period of time. Interest- Bearing Account - Answer️️ -An account that generates interest income on the available balance in the account. 1st Foundation - Answer️️ -Save $500 2nd Foundation - Answer️️ -Get out of debt, and stay out of debt 3rd Foundation - Answer️️ -Pay cash for a car (sinking fund) 4th foundation - Answer️️ -Pay cash for college 5th foundation - Answer️️ -Build wealth and give Negative Savings Rate - Answer️️ -Spending more money than you make and going into debt