Unit 11 Mixed Review

Front

What is the formula for calculating simple interest?

Back

Simple Interest = Principal × Rate × Time

Front

What is the formula for calculating compound interest?

Back

Compound Interest = Principal × (1 + Rate)^Time - Principal

Front

If a student receives a scholarship and a grant, how do you calculate the total amount they still need to pay for college?

Back

Total Amount Needed = Total Cost - (Scholarship + Grant + Family Contribution)

Front

What is the difference between simple interest and compound interest?

Back

Simple interest is calculated only on the principal amount, while compound interest is calculated on the principal plus any interest earned.

Front

How do you calculate the total balance of an investment with compound interest?

Back

Total Balance = Principal × (1 + Rate)^Time

Front

What is the importance of saving for college?

Back

Saving for college helps cover tuition costs, reduces the need for loans, and can provide financial security.

Front

How do you determine how much to save each month for a future expense?

Back

Monthly Savings = (Total Amount Needed - Current Savings) / Number of Months Until Expense

Front

What is the impact of interest rates on savings accounts?

Back

Higher interest rates increase the amount of interest earned on savings over time.

Front

How do you compare the interest earned on simple vs. compound interest over time?

Back

Compound interest generally earns more over time due to interest being calculated on previously earned interest.

Front

What is the significance of the time factor in interest calculations?

Back

The longer the time period, the more interest can accumulate, especially with compound interest.