Numeracy and Home Ownership

Recently, The Economist Magazine had a little blurb on a study regarding subprime mortgage borrowers who lost their houses.

It turns out that those who did better on a simple math test regarding percentages and interest rates were much more likely to hold onto their house during the downturn (even after normalizing for income & type of loan, etc). Take the test here.

What good is all that math you take in school? Well, it may allow you to be a home owner one day...