Financial Literacy Test

Front

Discount is ____________ from the price.

Back

subtracted

Front

Assets are best described as ____________.

Back

money or property you own

Front

You are purchasing a T.V for $990 with 9% sales tax. What is the final price of the T.V?

Back

$1,079.10

Front

Emilio borrows $1200 from a bank with 8.5% simple interest per year. How much will he have to pay back total in 2 years?

Back

$1,404

Front

Tina invested $2,000 in a simple interest account and earned 8% rate for 5 years. What is the interest that she earned on the account?

Back

$800

Front

What is the formula for calculating simple interest?

Back

Simple Interest = Principal × Rate × Time

Front

What does the term 'principal' refer to in finance?

Back

The original sum of money borrowed or invested.

Front

What is a budget?

Back

A plan that outlines expected income and expenses over a specific period.

Front

What is the difference between a need and a want?

Back

A need is something essential for survival, while a want is something desired but not essential.

Front

What is the purpose of saving money?

Back

To set aside money for future use or emergencies.