Business Math: Banking

Interest paid on the original principal plus the accumulated interest. 

• Simple Interest
• Compound Interest
• Exact Interest
• Ordinary Interest

A _____________ gives the bank instructions for adding money to your account. 

• Check Register
• Check
• Statement
• Deposit Slip

Which of the following is NOT something that HAS to be filled out on a check in order to cash it. 

• Memo 
• Dollar Amount
• Signature
• Date

___________ serves as a reference number for your payments. 

• Checking Account Number
• Routing Number
• Check Number
• Telephone Number

What does it mean to reconcile your checkbook?

• this happens when you fill out your check register.
• At the end of the month you check to see if your check register matches your bank statement.
• This happens when you go to the bank and deposit money 
• This happens each time you write a check. 

The equation I = P x R x T is used to find what?

• Finance Charge
• New Balance
• Simple Interest
• Compound Interest

Amy received $875 from her graduation party. She put the money in a bank with 4% simple interest rate.  How much interest will she have earned after 7 years?

• $205
• $225
• $245
• $2,000

Ethan borrowed $2,190 for a new dirt bike. He will pay the money back in 3 years with a simple interest rate of 2.5% How much interest will he pay?

• $164.25
• $172.75
• $1,642.50
• $2,354.25

You are supposed to write things such as ATM cash withdrawals and Debit Card purchases in you check register.

• True
• False

I = P x R x T, what does T stand for?

• Time in years
• Time in months
• Time in days
• Interest Rate