By Mark Miller
OK, folks — it’s time for a Personal Finance 101 quiz. Please answer the following three questions:
1. Suppose you had $100 in a savings account and the interest rate was 2% per year. After five years, how much do you think you would have in the account if you left the money to grow (more, less or the same)?
2. Imagine that the interest rate on your savings account was 1% per year and inflation was 2% per year. After one year, how much would you be able to buy with the money in this account (more, or less)?
3. Is this statement true or false: Buying a single company’s stock usually provides a safer return than a stock mutual fund. ... Read more