OL Financial Friday STAAR Practice!

Financial Friday STAAR Practice!

Do your best - it's for a grade!! :)

Topics

• Net Worth

• Simple Interest

• Sales Tax

What is NET WORTH?

Net worth is a measure of how much money you have to your name, excluding your debts!

To find net worth, you add up all your assets (what you own) MINUS the total of your liabilities (what you OWE)

Multiple Choice

Calculate net worth using the hints in the image!

• F

• G

• H

• J

Multiple Choice

Find the net worth.

• A

• B

• C

• D

What is SIMPLE INTEREST?

• Interest is how your money earns money!

• When you put money in a bank account, it gains interest, so you get more money!

• When you take out a loan, it also gains interest, and you OWE more money.

• Interest rates tell you what PERCENTAGE of your money you earn each year!

• The formula is I = Prt

Multiple Choice

Calculate the simple interest using the hints in the image!

• A

• B

• C

• D

Multiple Choice

Bill Gates put $2,000 into a bank account at an 8% rate for 5 years.

FIRST: what is the RATE as a decimal?

(Convert the percentage to a rate by moving the decimal two times!)

• r = 800

• r = 4.8

• r = .08

• r = 8

Multiple Choice

Bill Gates put $2,000 into a bank account at an 8% rate for 5 years.

Now, use I = Prt to calculate how much interest he would earn!

• I = $160

• I = $800

• I = $80,000

• I = $16

Sales Tax

• These questions are basically just calculating a percent of a number!

• Sometimes they ask for JUST the tax.

• Sometimes they ask for the TOTAL!

Multiple Choice

Calculate the sales tax using the hints in the image!

• $0.24

• $8.00

• $3.25

• $1.92

Multiple Choice

You just bought a new shirt for $12. The sales tax was 5%.

How much did you pay in sales tax?

• $0.60

• $0.50

• $12.60

• $5.00

Multiple Choice

LAST QUESTION:

You just bought a new shirt for $12. The sales tax was 5% (which we just found was $0.60)

How much would you pay in TOTAL for the shirt?

• $0.60

• $0.50

• $12.60

• $12.00