Financial Literacy Review

Mr. Jenkins deposited $1,250 into an account that earns 4.25% simple interst annually. He made no additional deposits or withdrawls. 

What will be the balance in Mr. Jenkins' account in dollars and cents at the end of 4 years?

• $1,462.50

• $1,462

• $1,462.55

• $462.50

Ben deposits $1,750 into each of two savings accounts. 

• Account I earns 2.75% annual simple interest. 

• Account II earns 2.75% interest compounded annually.

Ben does not make any additional deposits or withdrawals. Which amount is closest to the difference between the interest Ben will earn in Account I and the interest Ben will earn in Account II at the end of 2 years?  

• $96.25

• $1.32

• $97.57

• $193.82

A student is preparing to enroll in a public college in 2 years. The first year of tuition will cost $12000.

What is the minimum amount the student will need to save each month in order to pay for the first year of tuition at the end of the 24 months?

• $6,000

• $24,000

• $500

• $288,000

Gabriel deposits $2,500 into each of two savings accounts.

​Account A earns 4% annual simple interest.

​Account B earns 4% interest compounded annually.

​Gabriel does not make any additional deposits or withdrawals. What is the sum of the balances of Account A and Account B at the end of 3 years?

• $5,600.00

• $5,200.00

• $5,624.32

• $5,612.16

Mr. Lewis deposited $2,500 in a new account at his bank.

• The bank pays 6.5% interest compounded annually on this account.

• Mr. Lewis makes no additional deposits or withdrawals.

Which amount is closest to the balance of the account at the end of 2 years?

• $2,662.50

• $2,513.00

• $2,835.56

• $2,825.00

A student’s parents invested $5,000 in a college savings account that pays 4.85% annual simple interest. No additional deposits or withdrawals will be made.

Which amount is closest to the interest earned on the account at the end of 15 years?

• $5,174.11

• $10,174.11

• $3,637.50

• $8.637.50

A customer will borrow $12,000 to buy a car. Which loan option would allow the customer to pay the least amount of interest?

• A 4-year loan with a 5.2% annual simple interest rate

• A 5-year loan with a 4.2% annual simple interest rate

• A 6-year loan with a 4.7% annual simple interest rate

• A 3-year loan with a 8.4% annual simple interest rate

Answer explanation

You will need to work out all the answer choices.

Chloe has a $6,000 loan that charges 16% simple interest every year. How much interest will the costumer save by paying the loan off at the end of 1 year instead of at the end of 3 years?

• $960

• $1920

• $2880

• $3840

Find the MAD for the following set: 85, 90, 68, 75, 79

• 79.4
• 6.48
• 32.4
• 79

Students recorded the total number of pages and chapters in each of several books on the scatterplot.​​ Based on the scatterplot, which is the best prediction of the total number of pages in a book with 4 chapters?

• 150 pages

• 140 pages

• 90 pages

• 120 pages