Financial Literacy

Front

What is a discount?

Back

An amount by which the regular price of an item is reduced.

Front

What is the principal in finance?

Back

The original amount of money you borrow, deposit, or invest.

Front

True or False: Simple Interest can be something you earn if you are investing money.

Back

True

Front

True or False: Simple Interest can be something you pay if you borrow money.

Back

True

Front

If the cost of a meal is $36.50 and you plan to leave a 20% tip, what do you do after changing the percent to a decimal?

Back

Multiply the cost by the tip.

Front

What is simple interest?

Back

A method of calculating the interest charged or earned on a principal amount over a period of time.

Front

How do you calculate simple interest?

Back

Simple Interest = Principal x Rate x Time.

Front

What does the term 'interest rate' refer to?

Back

The percentage at which interest is charged or earned on a principal amount.

Front

What is a budget?

Back

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

Front

What is the difference between needs and wants?

Back

Needs are essential for survival, while wants are desires that enhance quality of life.