Part 2 Review Questions

  1. Question

    What is the difference between simple and compound interest?

  2. Question

    Using the Rule of 72, how long will it take you to double your savings if you have $3,200 in an account making 4% interest?

  3. Question

    Why is it generally a bad idea to make only minimum payments on your credit card?

Project

Imagine you deposit $125 in a savings account each month. It pays 3% annually, which is compounded monthly. How much interest will you earn for the year?