Quiz about Financial Literacy Quiz

Question 1

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?

Accepted Answer

$62,256

Answer

$15,564

Answer

$7,782

Answer

$31,128

Question 2

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?

Accepted Answer

$173.33

Answer

$260

Answer

$346.67

Answer

$4,160

Question 3

What is the simple interest formula?

Accepted Answer

I = PRT

Answer

A = P + I

Answer

I = A - P

Answer

A = P(1+r)^t

Question 4

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

Accepted Answer

Time, in years

Answer

Principal

Answer

Time, in hours

Answer

Interest

Question 5

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

Accepted Answer

the amount of money borrowed or deposited

Answer

the percent interest for his year

Answer

the amount taxed

Answer

the amount the bank owes you for being a customer at their bank

Question 6

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

Accepted Answer

divide the months by 12

Answer

divide 12 by the months

Answer

multiply 12 times the months

Answer

change the months to a decimal

Question 7

What is the compound interest formula?

Accepted Answer

A = P(1+r)^t

Answer

I = PRT

Answer

A = P + I

Answer

I = A - P

Question 8

Principal = $500

Simple Interest Rate = 5%

Time = 5 years

What is the interest earned?

Accepted Answer

$125

Answer

$95

Answer

$105

Answer

$135

Question 9

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

Accepted Answer

$100

Answer

$2,100

Answer

$10,000

Answer

$400

Question 10

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?

Accepted Answer

$1,800

Answer

$600

Answer

$450

Answer

$1,873

Question 11

Mr. Wilkins deposited $2,500 in a new account at his bank.
*The bank pays 6.5% interest compounded annually on this account.
*Mr. Wilkins makes no additional deposits or withdrawals.
Which amount is closest to the balance of the account at the end of 2 years?

Accepted Answer

$2,835.56

Answer

$2,513.00

Answer

$2,662.50

Answer

$2,825.00

Question 12

Holly is taking out a loan in the amount of $10,000.  Her choices for the loan are a 4-year loan at 4% simple interest and a 6-year loan at 5% simple interest.  What is the difference in the amount of interest Holly would have to pay for each of these two loans?

Accepted Answer

$1,400

Answer

$1,600

Answer

$3,000

Answer

$4600

Question 13

Olivia will deposit $1,530 in an account that earns 6% simple interest every year.  Her sister Melinda will deposit $1,500 in an account that earns 8% interest compounded annually.  The deposits will be made on the same day, and no additional money will be deposited or withdrawn from the accounts.  Which statement about the balances of Olivia's account and Melinda's account at the end of 3 years is true?

Accepted Answer

Melinda's account will have about $84.17 more than Olivia's account.

Answer

Olivia's account will have about $5.40 more than Melinda's account.

Answer

Olivia's account will have about $84.17 more than Melinda's account.

Answer

Melinda's account will have about $5.40 more than Olivia's account.

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