$560.00

$512.16

$562.43

$545.00

$13,000

$17,449.40

$1,000

$3,000

The amount of money you save every year

A percentage of money you earn for volunteering

A fee charged by lenders for borrowing money or earned on savings or investments

A discount offered by banks

Simple interest only applies to loans, and compound interest only applies to savings

Compound interest is better for borrowing money, while simple interest is better for investing

Simple interest decreases over time, while compound interest stays constant

Simple interest is only calculated on the principal, while compound interest is calculated on the principal and earned interest

It increases only at the end of the year

It decreases as interest is added to it

It increases as interest is added to it

It stays the same

$110

$105

$120

$102

The idea that money in the future is worth more than money today.

The idea that inflation has no impact on money’s value.

The idea that money has no value over time.

The idea that money available today is worth more than the same amount in the future.

An increase in the production of goods and services

A rise in wages

A decrease in the value of money

A rise in the general price level of goods and services over a period of time

Because compound interest earns more in the first year

Because the interest rate increases each year

Because inflation increases the total value of the investment

Because interest is calculated on both the original principal and the accumulated interest

Wages always increase at the same rate as prices

Wages decrease during inflation

Wages often increase but not necessarily at the same rate as prices

Inflation has no effect on wages