Unit 9 Personal Financial Literacy

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

• fraction

• decimal

• ratio

• dollar amount

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

• the amount of money borrowed or invested

• the percent interest for his year

• the amount taxed

• the amount the bank owes you for being a customer at their bank

Tags

CCSS.7.RP.A.3

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

• Principal

• Interest

• Percent

• Total Amount

Tags

CCSS.7.RP.A.3

The compound interest formula is A=P(1 + r)^t. The A represents the ___________________.

• Principal

• Interest

• Percent

• Total Amount

Tags

CCSS.7.RP.A.3

In both simple and compound interest formula the "t" represents _____________________.

• time in years

• time in months

• tax

• total amount

Tags

CCSS.7.RP.A.3

Rex invest $1,000 into an account that earns 5% compound interest for 10 years. How much interest will Rex earn on his investment?

• $637.90

• $628.89

• $1,637.90

• $1,628.89

John invest $400 into an account at a rate of 3.25% simple interest. How much interest will the account yield after 9 years?

• $770

• $1,170

• $283

• $117

Tags

CCSS.7.RP.A.3

Kim wants to invest $12,000. She has two options;

Option 1: earning simple interest at 5% or

Option 2: earning compound interest at 4.4%

Which investment option will yield more over a 12 year period.

• both options yield the same amount

• simple interest at 5%

• compound interest at 4.4%

• a decision cannot be determined

Tags

CCSS.7.RP.A.3

Sam uses a credit card to buy a new Apple Smart Watch that cost $1,500. The credit card charges 7.5% compound interest for 24 months. What is the total amount Sam will have to repay?

• $1,725

• $225

• $233.44

• $1,733.44

Tags

CCSS.7.RP.A.3

Freddy will attend the a university that cost $36,000. His parents will pay for 65% of his college expenses. If Freddy saves for 18 months, how much will he need to save per month to cover his college expenses?

• $700

• $1,300

• $500

• $1,500

Tags

CCSS.6.RP.A.3C