Quiz about Personal Financial Literacy

Question 1

The ability to borrow money

Accepted Answer

credit

Answer

term

Answer

interest

Answer

monthly payment

Question 2

The payment made towards the loan balance every month.

Accepted Answer

monthly payment

Answer

credit

Answer

credit limit

Answer

term

Question 3

The length of time given to repay a loan

Accepted Answer

term

Answer

balance

Answer

monthly payment

Answer

interest

Question 4

The amount charged to borrow money

Accepted Answer

interest

Answer

term

Answer

credit limit

Answer

monthly payment

Question 5

The maximum amount an individual can borrow.

Accepted Answer

credit limit

Answer

term

Answer

interest

Answer

credit

Question 6

The act of paying off debt.

Accepted Answer

repayment

Answer

credit

Answer

monthly payment

Answer

term

Question 7

When you borrow money, do you pay back more than the loan amount, less than the loan amount, or exactly the loan amount?

Accepted Answer

more than the loan amount

Answer

less than the loan amount

Answer

exactly the loan amount

Question 8

To pay off a personal loan, John must make a monthly payment of $120 for 1 year. How much money must John pay back?

Accepted Answer

$1440

Answer

$120

Answer

$121

Answer

$12

Question 9

Dinah pays of a 6 year loan at $1000 per month. What is her total repayment amount?

Accepted Answer

$72,000

Answer

72

Answer

$6000

Answer

$166.67

Question 10

Will takes out a loan of $6000 at 3.5% interest. The loan term is 2 years, with a monthly payment of $460. What is his total repayment amount?

Accepted Answer

$11,040

Answer

$6000

Answer

$460

Answer

$920

Question 11

Will takes out a loan of $800 at 6% interest. The loan term is 18 months, with a monthly payment of $92.44. What is his total repayment amount?

Accepted Answer

$1663.92

Answer

$707.56

Answer

$554.64

Answer

$800

Question 12

Will takes out a loan of $1400 at 4.5% interest. The loan term is 3 years, with a monthly payment of $101.89. How much interest does he pay?

Accepted Answer

$2268.04

Answer

$1400

Answer

$5502.06

Answer

$3668.04

Question 13

What does the "I" in the interest formula stand for?

Accepted Answer

Interest

Answer

Principal

Answer

Rate

Answer

Time

Question 14

Maria borrowed $3,000 at a simple interest rate of 4% per year. How much did she have to repay after 4 years?

Accepted Answer

$3,480

Answer

$480

Answer

$4,800

Answer

$7,800

Question 15

John put $14,000 in an account at a simple interest rate of 1% per year. How much interest will he get after 12 years?

Accepted Answer

$1,680

Answer

$16,800

Answer

$168,000

Question 16

Jerry borrowed $4,000 for 5 years at 6% simple interest rate. How much interest is that?

Accepted Answer

$1,200

Answer

$800

Answer

$1,000

Answer

$1,500

Question 17

Ann puts $300 in a bank account earning 4% interest. How much will she earn in interest in 1 year?

Accepted Answer

12

Answer

4

Answer

8

Answer

16

Question 18

Vincent places $1200 in a bank account that earns 10% simple interest. He leaves it there for 6 years. What is the account balance at the end of 6 years?

Accepted Answer

$1920

Answer

$720

Answer

$2125.87

Answer

$925.87

Question 19

Your 3 year investment of $20,000 received 5.2% interest compounded annually. What is your total return?

Accepted Answer

$23,285.05

Answer

$3,285.05

Answer

$2,385

Answer

$32,285

Question 20

You borrowed $59,000 for 2 years at 11% which was compounded annually. What total will you pay back?

Accepted Answer

$72,693.90

Answer

$13,693.90

Answer

$1,363.90

Answer

$73,793.90

Question 21

Your allowance of $190 earned an interest of 11% compounded annually for 1 2/3 years. How much interest did you earn on your allowance?

Accepted Answer

$36.10

Answer

$343.90

Answer

$153.90

Answer

$226.10

Question 22

You invested $1,900 at 4% interest compounded annually for 3 years.  How much interest did you earn in 3 years?

Accepted Answer

$237.24

Answer

$2,372.40

Answer

$2,137.24

Answer

$3,197.60

Question 23

John is attending a college that costs $20,000 per year. His parents will pay half the cost. If he plans to save for 2 years, how much should he save per month to pay for his first year of college?

Accepted Answer

$416.67

Answer

$5000

Answer

$833.33

Answer

$40,000

Question 24

Whitney is attending a college that costs $7,000 per year. Her parents will pay 25% of the cost. If she plans to save for 18 months, how much should she save per month to pay for her first year of college?

Accepted Answer

$291.67

Answer

$3500

Answer

$97.22

Answer

$5250

Question 25

Gabriel is attending a college that costs $40,000 per year. His parents will pay 40% of the cost. If he plans to save for 4 years, how much should he save per month to pay for his first year of college?

Accepted Answer

$500

Answer

$24,000

Answer

$333.33

Answer

$4000

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