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LET’S PRACTICE
Name: _____________________________________________________________________________
15. James was surprised when he received a performance bonus of $500 at his job. He’s planning to use the money to upgrade to a new model snowboard. Right now he has about $550 in his savings — just enough to get him through about 2 weeks in the event he were to lose his job. What’s your advice? _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ 16. Approximately what percentage of Americans have no savings and are living paycheck to paycheck ? a. 15 c. 35 b. 90 d. 76 17. The principle of compounding applies to savings and _____________. a. credit card charges c. investing b. APR d. loans 18. Alison bought 1000 shares of a stock in a large manufacturing company. It recently paid $250 in dividends . She’s thinking of using it in a weekend shopping spree at the the outlet mall. Knowing what you know about compounding, what’s your advice to Alison about the dividend? Explain. _ ______________________________________________________________________________ _ ______________________________________________________________________________ 19. State the Rule of 72 formula . Estimate how long it will take to double your money at the compounding rates of: 4%, 7% and 11%. _ ______________________________________________________________________________ 20. In the box below, list your emergency savings needs, then identify your personal short term and long term financial goals. PRODUCT PREVIEW
Emergency Savings Needs
Short Term Financial Goals
Long Term Financial Goals
THE 21st CENTURY STUDENT’S GUIDE TO FINANCIAL LITERACY 145
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