Financial Literacy

Financial Literacy

S. Foots

The simple interest formula is on the reference material sheet.

Multiple Choice

Which services is a bank likely to offer?

• net deposit and balance
• online banking and savings accounts
• check writing and car wash
• credit card and Tootsie Rolls

Multiple Choice

Which one of the following are financial institutions?

• bank and credit union
• library and hospital
• school and museum
• Starbucks and Wal-Mart

Multiple Choice

The shorter the money is saved, the better.

• True
• False

Multiple Choice

The rate is given as a percent (%).  Before using it in the simple interest formula, you must first convert it to a______.

• fraction
• decimal
• ratio
• dollar amount

Multiple Choice

If you deposit $2,000 with simple interest at 6%, how much interest will you have grown in 2 year?

• $200

• $240

• $350

• $24000

Multiple Choice

The simple interest formula is I=Prt.  The P represents the principle.  The principle is ___________________.  

• the amount of money borrowed or deposited
• the percent interest for his year
• the amount taxed
• the amount the bank owes you for being a customer at their bank

Multiple Choice

Starting money = $350.
Interest rate = 2.5%
TIme = 3 years.
How much interest?

• $7.50
• $26.25
• $87.5
• $262.50

Multiple Choice

Jerry borrowed $4,000 for 5 years at 6% simple interest rate. How much interest is that?

• $800
• $1,000
• $1,200
• $1,500

Multiple Choice

Emilio borrows $1200 from a bank with 8% simple interest per year.  How much will he have to pay back total in 2 years?

• $150
• $192
• $1350
• $1392