Question

Your friend Eetu says he has no forms of investment in his life; however, you can prove him wrong. Which of the following was a form of investment, even though Eetu didn’t even realize it?

a. Owning a car
b. Having a savings account
c. Purchasing a new smartphone
d. Buying a lottery ticket

Answer 1

Having a savings account is a form of investment because it earns interest over time.

Step-by-step explanation:

The correct answer is b. Having a savings account.

A savings account can be considered a form of investment because it allows your money to earn interest over time. By depositing money into a savings account, you are essentially lending that money to the bank, which then pays you interest on your deposit. This interest acts as a return on your investment.

For example, if you deposit $1,000 into a savings account with an annual interest rate of 5%, you will earn $50 in interest over the course of a year. This means that your initial deposit has grown by 5%.