Question

pregunta 11 (32 puntos)
correctly match the following terms with their definitions.
columna a

1. ____ the average time it takes someone to become a millionaire.
2. ____ saving money over time for a large purchase.
3. ____ when youre an adult, the number of months your emergency fund should cover.
4. ____ a rate which is charged on debt or paid on investments, for the use of money.
5. ____ a savings account that is set aside for the specific purpose of emergencies.
6. ____ dave ramseys steps for financial success for teens
7. ____ interest paid, on interest previously earned
8. ____ the persistent increase in the costs of goods and services over time.

columna b
a. inflation rate
b. interest rate
c. five foundations
d. 6-12 months
e. 3-6 months
f. emergency fund
g. sinking fund
h. compound interest
i. 21 years
j. 17 years

Explanation:

1. The average time to become a millionaire via consistent investing aligns with 21 years.
2. A sinking fund is savings for large future purchases.
3. Adult emergency funds should cover 6-12 months of expenses.
4. Interest rate is the cost of debt or return on investments.
5. An emergency fund is a savings account for unexpected crises.
6. Dave Ramsey's teen financial success steps are the Five Foundations.
7. Compound interest is interest earned on prior interest.
8. Inflation rate is the ongoing rise in goods/service costs.

Answer:

1. i. 21 years
2. g. sinking fund
3. d. 6-12 months
4. b. interest rate
5. f. emergency fund
6. c. Five Foundations
7. h. compound interest
8. a. inflation rate