Financial Literacy Quiz

What is the formula for calculating simple interest?

• I = Prt

• B = P₁ (1 + r)

• B = P₁ (1 + r)ⁿ

• I = P (1 + r)ⁿ

What is the formula for calculating compound interest?

• B = P₁ (1 + r)

• I = P (1 + r)ⁿ

• I = Prt

• B = P₁ (1 + r)ⁿ

Which of the following is considered an asset?

• Credit Card

• Savings Account

• Student Loan

• Mortgage

Which of the following is considered a liability?

• Savings Account

• 401(k) Plan

• Car

• School Loans

If Amanda has $22,808 in assets and $29,220 in liabilities, what is her net worth?

• -$6,412

• $6,412

• $29,220

• $22,808

If the Wylan family's total expenses add up to $2,770 and $600 of their budget goes to savings, what percentage of the Wylan family's budget is allocated to savings?

• 12%

• 22%

• 42%

• 16%

The Lopez family's yearly expenses are $98,500. They pay 25% of their income in taxes. What is the minimum amount the Lopez family must earn to maintain their yearly expenses?

• $131,333.33

• $25,000

• $75,000

• $98,500

What is the purpose of the Family Budget Estimator?

• To estimate future expenses

• To determine net worth

• To calculate compound interest

• To calculate simple interest