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AGEC 235 EXAM 3 REVIEW QUESTIONS WITH COMPLETE ANSWERS

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AGEC 235 EXAM 3 REVIEW QUESTIONS WITH COMPLETE ANSWERS

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IRA vs 401K


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IRA is contributed to by you alone, an employer can match in a 401K

,How many negotiations should take place when buying a car?


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3




What is the rule of 72?


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72/int rate is the time it takes an investment to double




Interest Rate Risk


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Changes in interest rates result in changes in security prices (ex. bonds)




Coupon


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Bond interest pmts

, Liability Insurance


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Damages for accident you caused. STATE MANDATED




Social security stops growing


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70




Compound Interest


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Interest accrues on an investment, is re-invested, and interest is
recalculated




Dealer Profit


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MSRP - Invoice Price - Dealer Holdback

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