The Average American Can't Answer These Three Simple Finance Questions

Business Insider ^ | 05/09/2014 | Cullen Roche

[Chemistry Ken]

You just just proved that you do can anything you want if you divide by zero! Your initial statement was that A=B, so A-B=0. Dividing by zero OK in modern math?

[minnesota_bound]

It is Joe *#@$(@#( to get a 2% rate? Biden : )

[grania]

#3 I would get wrong. For someone who has basic knowledge of the stock market, they'd be better off choosing one stock rather than leaving it to a mutual fund, where the expenses eat up the profits. What makes the question ridiculous is the cost of purchasing one share of stock. #1....the answer is more than $110....2% a year for 5 years, plus accrual. The choices are somewhat irrelevant.

You want bad? A bank had a "professional" call me about helping me with planning my finances. A savings account is paying .6% interest, and that with restrictions. I asked her "roughly how long would it take my savings to double, using the rule of 72?". She didn't even know what the rule of 72 is! And that's the banks "expert".

[PeterPrinciple]

I would add the following question.

You have a million dollars invested at 1% interest rate. Can you live off the interest?

[BillM]

A and B are ZERO
Step 7 is a division by zero which has no solution!

[Responsibility2nd]

BTW the CarFax readout showed 3 previous owners. One of which had the car repossessed after about 5 months.

______________________________________________

Hope you bought the extended warranty.

[Roman_War_Criminal]

Most Freepers could do this test in their sleep.
Those who can’t vote democrat

[freekitty]

I will just have to wait the 5 years to find out. Maybe Pelosi could help.

[Buckeye McFrog]

My mom thinks that the bank is the safest place for her money.

My great aunt thought that it was her mattress. During the Depression she and her late husband had their life savings in a bank that FDR closed which never reopened.

Our family found a healthy five-figures in cash stashed in her place after she died.

[Veggie Todd]

Hopefully, the test isn’t written in cursive.

[Foundahardheadedwoman]

Does not surprise me that folks cannot answer these simple questions. We are a nation that is largely full of financial illiterates and it shows. Try to explain to someone that you can make your phone bill drastically lower but there is an upfront outlay of a little over a hundred bucks and their mind stops right at that point. The idea of a small sacrifice now for long term savings is unknown to them, I have seen it in my own family I am ashamed to say.
I have one question that I would like some input on. Obamacare premiums must be paid or you face the IRS or whoever, read recently that 70% of people have less then a thousand bucks in the bank, they are living check to check, now comes higher premiums and much higher deductibles with Obamacare, with the amount of cushion folks have they cannot absorb any unexpected expense, what will they have to give up? You do not have to pay your mortgage by law, so I expect many people to walk away from their house payments, they really have no choice. What will this do to the value of homes? What will this do to rents? I figure what is coming as Obamacare is fully implemented and the subsidies are cut, is a glut of houses on the market and sky high rents. The way I see it this is going to make the Great Depression look like a cakewalk. Most people could feed themselves by gardening and raising a pig or two or hunting. Not now, not in this world of fast food and no knowledge of how to live off the land and with the government regulating everything right down to rainwater collection and gardens, it is not possible. If I am reading the tea leaves correctly, I see nothing but the hardest times we as a nation have ever faced, with the exception of the first settlers in America. If I am wrong, let me know the flaw in my thinking. I would appreciate it.

[bkopto]

You got an “A”, which entitles you to pay taxes to support the all the government-educated idiots who flunked.

[muir_redwoods]

Q. Would you pay more for a high interest bond or for a low interest bond?

[cornfedcowboy]

I remember my geometry teacher showing us this problem. We were pretty quick though to catch it.

[o-n-money]

If somebody doesn’t want to cooperate, just haul them away.
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That’s the point, now they have it in writing.

[Gamecock]

Probably more common a story than we realize.

[Joe Miner]

You must be an illegal alien you aced it.

[Hoffer Rand]

You get partial credit for your answer. Full credit is blue, except on Tuesday.

[Gumdrop]

You must be right as that is the same as my answers! :<)

[Aevery_Freeman]

Let's see.

The nation has been divided by (Emperor) Zero, what has gone wrong?