Financial Literacy Quiz

Whitney has a list of the estimated costs for each semester to attend a four-year university. What is the total estimated cost to attend college for four years?

• $15,564

• $62,256

• $7,782

• $31,128

The cost of tuition at the college Sabrina wants to attend is $10,400 per year. Sabrina's family will pay 60% of the tuition cost each year. Sabrina has two years to save enough money to attend her first year of college. What is the minimum amount that she should save each month in order to have enough money to attend her first year of college?

• $260

• $346.67

• $4,160

• $173.33

What is the simple interest formula?

• I = PRT

• A = P + I

• I = A - P

• A = P(1+r)^t

The simple interest formula is I=PRT.  What does the T represent?

• Principal

• Time, in hours

• Interest

• Time, in years

The simple interest formula is I=Prt.  The P represents the principle.  The principle is ___________________.  

• the amount of money borrowed or deposited
• the percent interest for his year
• the amount taxed
• the amount the bank owes you for being a customer at their bank

If you are calculating the simple interest and you are given the time in months.  How can you find the time in years?

• divide 12 by the months
• divide the months by 12
• multiply 12 times the months
• change the months to a decimal

What is the compound interest formula?

• I = PRT

• A = P + I

• I = A - P

• A = P(1+r)^t

Principal = $500

Simple Interest Rate = 5%

Time = 5 years

What is the interest earned?

• $95

• $125

• $105

• $135

Isabella deposited $2,000 in an account that pays 5% simple annual interest.  After one year how much interest will her investment pay? 

• $2,100
• $100
• $10,000
• $400

Tamara invested $15,000 in an account that pays 4% annual simple interest.  Tamara will not make any additional deposits or withdrawals.  How much interest will Tamara earn on her investment at the end of 3 years?

• $1,800
• $600
• $450
• $1,873