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Finance Questions - Compound Interest & Security Investments

Chapter 3:

What types of personal financial decisions have you made that involve compound interest? Be specific and cite any references.

Chapter 4:

Read the following article:

http://www.investinginbonds.com/MarketAtAGlance.asp?catid=31&id=78

Discuss which type of security you might invest in if you had spare funds and why.

Be specific and cite any references.

Solution Preview

What types of personal financial decisions have you made that involve compound interest? Be specific and cite any references.

Unfortunately, compound interest has not always worked for me, but rather against me. Credit cards, car loans, furniture loans, home loans, and any other type of debt where one is required to pay interest will trigger the negative aspects of compound interest (Sangl, 2008). I have multiple credit cards which are financed based on compound interest. So in essence, I am paying interest on my interest. It is definitely true that credit cards with compound interest have the ability to make a person poor. In contrast, I also have a savings account which is calculated ...

Solution Summary

This solution discusses compound interest and security investments, what types of personal investments have been made including these types of investments.

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