PERSONAL FINANCE QUESTIONS AND ANSWERS 100% PASS

PERSONAL FINANCE QUESTIONS AND ANSWERS 100% PASS Using information from the article, "Why is Learning Personal Finance Important?", fill in the blanks below about why understanding finances and money is important. (please only enter a single word for each blank) Money, choice, importance Learning about money: gives you knowledge and understanding to make smart money choices. If an individual saves $2000 a year (only $167 a month) starting when they are 25 years old and gets an 8% return, how much will she have when she reaches the age of The rationale for beginning your budget creation with 12 months of payment history would be to: all of these answers are correct Sheri budgets according to the 50-20-30 rule, and wonders how to categorize money that she recently spend on new clothing and a weekend vacation. These expenses should be categorized with the: 30% of flexible spending Interpretation of the 50-20-30 budgeting rule is that these percentages represent the: NOT average amount over time for each category. Perhaps the min percent If budgeted expenses are expected to exceed budgeted income, which of the following may provide a solution? Reclassify some 'needs' as 'wants According to Mila Baker, the concept of "financial regret" refers to: an expense that you wish you would not have made. Reassessing characteristics such as the quality, style, or newness of certain items (for example, a cell phone) may be necessary in order to: all answers Donald saves by depositing $1,000 at the beginning of each year into an account that earns 10%, compounded annually. How much interest does Donald's account earn during its third year? 331 We have spent a fair amount of time on the subject of compound interest, but which of the following provides the best description? Compound interest refers to: paying interest on both the principal as well as on the previously paid interest. For a savings account that is receiving compound interest, which is correct? The principal balance is growing each year How about if I offer to buy your used car for $5,000, but you permit me to pay nothing until 10 years elapse. In return, you want to earn 12% interest, compounded annually. How many dollars will you expect me to give to you after ten years? 15529 A quick and easily stated goal for this course is for you to learn how to achieve "financial independence." However, that goal: may mean different things during different stages of your life. A good reminder in budgeting is that, if you can afford to make the monthly payment each month, then it is acceptable to take on the debt. false Betting 'double or nothing' on each hold in a round of gold may not be a realistic exercise, but it clearly points out that starting to save early will: ncrease the number of doublings during your career. The non-negotiable payments in your monthly budget can be considered the: fixed payments, such as rent. As discussed in the reading, the ability to fulfill your dreams and purpose is possibly the best answer to why we should: be vitally concerned with learning personal finance. In order to become a millionaire, it is most likely necessary for you to have: developed and maintained good saving habits According to "The Millionaire Next Door," if adult children are being financially supported by parents, those adult children are: lesslikely