A Penny Saved by Alysha Mckenzie

1)How does the interest rate encourage household saving?
      Interest rates encourage household savings becaue overtime the more interest you have , the larger amount of money you will acquire with your household savings .

2)How does household saving foster economic growth?
      It fosters economic growth because when you take all of your household savings to the bank you are able to gain interest if you levae the money in the bank for an extended amount of time .

3)How does saving vary over a person's lifecycle?
   Savings  vary over a persons lifetime due to compund interest and interest rates .
4)Where are some places where people can save?
Some places that people can save in Banks , federal reserves , stores , grocery stores , even in school .

5) Show and explain how to use the compound interest formula . Say Juan invests $50 at 10% for
30 years (compounded annually). How much will Juan have at the end of 30 years? $50