Finance Review

Use the Rule of 72 to calculate how long it will take for your money to double if it’s earning 6%

in interest:

• 12 years

• 16 years

• 36 years

• 72 years

Which of the following will most benefit you financially?

• A savings account that compound interest daily

• A savings account that compound interest monthly

• A savings account that compound interest yearly

• A savings account that does not compound interest

Which type of bank account typically offers no interest?

• Savings

• Money market

• Certificate of Deposit

• Checking

Which of the following typically have the highest fees?

• Retail bank

• Credit union

• Online bank

• Payday lender

Which of the following typically has the lowest fees or costs to use?

• Debit card

• Credit card

• Cash advance

• Payday loan

The term referring to the rate of yearly interest for your credit card is commonly known as:

• Default rate

• APR

• COD

• Grace period

Use the Credit Card Disclosure (Figure 3) to answer the following: What is the customary APR on purchases after the initial 12 months?

• 36.5%

• 27.357%

• 18.25%

• 5.65%

1. Use the Credit Card Disclosure (Figure 3) to answer the following: What is the annual fee for this card?

• $0

• $5

• $29

• $39

Your credit history is tracked by all of the following EXCEPT:

• Equifax

• Federal reserve

• Experian

• Transunion

Good credit is usually required for which of the following?

• Buying a new car

• Getting a credit card

• Purchasing a home

• All of the above