1. What is Amoral? Give two examples.
- Amoral means that something is neither good nor bad, it has no moral to it. Two examples of amorality could be money or a brick, they can only do what the person withholding them use them for. You can use a brick to either build something or destroy something. Same thing goes for money, you can either use it to give good fortune to someone else, or you can use it to take away someone else's or even your own fortune.
2. What is Murphy's Law? Give two examples.
- Murphy's Law states that if something can go wrong, it will. One example of Murphy's Law is that you can simply lock the doors of your car at a very unnecessary time. Another example is at any given moment, you might have a medical situation that needs to be taken care of at that second. That is why it is always the best idea to save money, you never know what situation you can run into at any moment.
3. Explain Compound Interest? Use the Ben and Arthur scenario.
- Compound Interest can be simply put, "interest on interest". It happens when you put a certain amount within your savings account and the interest builds up over the years as you continue to add money. Ben and Arthur demonstrated what is known as compound interest. Ben began putting money in his account at an early age, but stopped once he reached 26. Arthur began putting money in his account at 26 and continued to do so as he aged. In the end, their savings had a completely different amount. Ben ended up with over $2,000,000 and Arthur ended up with a little over $1,000,000. Ben's interest continued to build ever since he started early at an age where he didn't have to necessarily use his money for bills or things of that nature. Arthur's interest did build up, but starting later in life didn't prove to be a big help since he waited so late to do it. Saving money should be practiced as early as someone is given it.
- Amoral means that something is neither good nor bad, it has no moral to it. Two examples of amorality could be money or a brick, they can only do what the person withholding them use them for. You can use a brick to either build something or destroy something. Same thing goes for money, you can either use it to give good fortune to someone else, or you can use it to take away someone else's or even your own fortune.
2. What is Murphy's Law? Give two examples.
- Murphy's Law states that if something can go wrong, it will. One example of Murphy's Law is that you can simply lock the doors of your car at a very unnecessary time. Another example is at any given moment, you might have a medical situation that needs to be taken care of at that second. That is why it is always the best idea to save money, you never know what situation you can run into at any moment.
3. Explain Compound Interest? Use the Ben and Arthur scenario.
- Compound Interest can be simply put, "interest on interest". It happens when you put a certain amount within your savings account and the interest builds up over the years as you continue to add money. Ben and Arthur demonstrated what is known as compound interest. Ben began putting money in his account at an early age, but stopped once he reached 26. Arthur began putting money in his account at 26 and continued to do so as he aged. In the end, their savings had a completely different amount. Ben ended up with over $2,000,000 and Arthur ended up with a little over $1,000,000. Ben's interest continued to build ever since he started early at an age where he didn't have to necessarily use his money for bills or things of that nature. Arthur's interest did build up, but starting later in life didn't prove to be a big help since he waited so late to do it. Saving money should be practiced as early as someone is given it.