A new study released by FINRA reveals only 18% of millennials are able to correctly answer 4 out of 5 questions about finance.
Links mentioned in the show:
FINRA releases results of study: http://www.finra.org/Newsroom/NewsReleases/2014/P456463
Take the quiz yourself by following this link: http://www.usfinancialcapability.org/quiz.php
Amortization schedules for 15yr vs 30yr mortgage (1st month interest is the same)
Listen to the podcast for the answers:
1) Suppose you have $100 in a savings account earning 2% interest a year. After 5 years, how much would you have?
More than $102
Less than $102
2) Imagine the interest rate on your savings account is 1% a year and inflation is 2% a year. After one year would the money in the account buy more than it does today, exactly the same or less than today?
3) If interest rates rise, what will typically happen to bond prices? Rise, fall, stay the same, or is there no rela