Personal Financial Literacy

What kind of interest is earned only on the principal?

• Simple

• Compound

• Complex

• Basic

What does the letter "A" mean in A=P(1+r)^t ?

• Account

• Area

• Allowance

• Total Amount

Time must be given in...

• Days

• Weeks

• Months

• Years

• Decades

Tags

CCSS.4.MD.A.1

An additional amount of money paid or charged is...

• Total

• Interest

• Rate

• Principal

Tags

CCSS.7.RP.A.3

The original amount of money paid or charged is...

• Total

• Interest

• Rate

• Principal

Tags

CCSS.7.RP.A.3

What kind of interest is earned on the principal plus the interest?

• Simple

• Compound

• Complex

• Basic

Explain the difference between simple and compound interest. (Choose all that are true.)

• Simple charges/earns interest on the principal and interest accrued.

• Compound charges/earns interest on the principal only.

• The simple interest equation calculates total amount.

• The compound interest equation calculates total amount.

• Simple charges/earns interest on the principal only.

Tags

CCSS.7.RP.A.3

You are putting $2000 into your savings account.

At the end of 10 years, you have $2700 in your account.

What interest rate do you have if you are earning simple interest?

• 13.5%

• 3.5%

• .035%

• 7.4%

Tags

CCSS.7.RP.A.3

Sebastian is investing $3500 in a savings account.

He can go to Bank A which offers a 3.75% simple interest rate,

or he can go to Bank B which offers 2% compounded annually.

If he leaves his money in the bank for 5 years, what is the difference in the amount he would earn at the two banks?

• $3208.03

• $3791.97

• $357.35

• $291.97

You just bought a new car for $15,000 with a 3% compound interest rate.

The loan is for 60 months.

How much interest will you end up paying?

• $17,389.11

• $2389.11

• $7,337.40

• $40,693.95