Which credit card offers the best deal? Should you take the cash rebate on the new car or the low interest rate? You are bombarded with confusing financial questions every day. Here are 20 more.
Question 1 of 20
What's the most important difference between a traditional IRA and a Roth IRA?
Question 2 of 20
Bob is 30 and expects to be in a higher tax bracket by the time he retires. Which is the better deal for Bob: to invest in a traditional IRA or a Roth IRA?
Question 3 of 20
Nancy only has $5 in her checking account, but she wants to buy a $20 skirt. Which is the better deal: write a $20 check and let it bounce or take out a payday loan and repay it in two weeks?
Question 4 of 20
What's the biggest difference between interest rates expressed as annual percentage rate (APR) and annual percentage yield (APY)?
Question 5 of 20
Which is the better deal: Signing up for a credit card with an advertised APR of 12 percent or a card with an APY of 12.34 percent? (Both cards compound interest monthly).
Question 6 of 20
Which is the better deal: Investing in an IRA or investing in a 401(k)?
Question 7 of 20
Steve has an extra $1,000 and wants to pay down some debt. Should he pay down his $200,000 mortgage (3 percent APR) or pay down his $10,000 credit card debt (17 percent APR)?
Question 8 of 20
Every investor wants to pick individual stocks or mutual funds that will be the best performers in the future. Which of these is the best strategy?
Question 9 of 20
Let's say you have a 30-year $200,000 mortgage at an interest rate of 6.5 percent, giving you a monthly payment of $1,264. Your mortgage broker encourages you to make one extra mortgage payment each year to lower the principal faster. If you do that, which number will be larger: the total amount you'll save in interest over the life of the loan, or a winning lottery ticket worth $50,000?
Question 10 of 20
What time of year are you more likely to get the best deal on a new car or truck?
Question 11 of 20
Sally has a credit card debt of $10,000 at an interest rate of 17 percent annually. She’s been paying the minimum every month, but it’s taking forever to make a dent. What would be the best way to pay it off?
Question 12 of 20
What is the best month to make an offer on a house?
Question 13 of 20
You are planning a long-awaited vacation to France. What is the best way to pay for purchases while traveling abroad?
Question 14 of 20
If you are looking for the cheapest airline tickets, what is the best day to fly?
Question 15 of 20
You are clothes shopping and comparing the sales at two competing stores. Clothes King is advertising "50 percent off all items in the store," and Thrifty Threads is promoting a "buy one, get one free" sale on everything in the store. Which deal will save you more money?
Question 16 of 20
Which was a better deal for the United States in terms of price per acre: the Louisiana Purchase from France or the purchase of Alaska from Russia?
Question 17 of 20
You want to buy a $20,000 car and only have $5,000 saved up for a down payment. The wily car dealer offers you two different options. Number one: Take the regular APR for 6.99 percent for a 60-month loan and get an instant cash rebate of $2,000. Number two: Take a lower APR of 3 percent but no cash rebate. Which deal will result in a lower monthly payment?
Question 18 of 20
True or false: Since generic medications are cheaper, they are allowed by the U.S. Food and Drug Administration to be less effective than the name-brand equivalent?
Question 19 of 20
Credit card deals are notoriously hard to decipher, especially those offering cash back on every purchase. Which is the better deal: A card that gives you 1.5 percent cash back on all purchases, but charges a $100 annual fee, or a card with no annual fee, but zero cash back on every purchase?
Question 20 of 20