Personal Financial Literacy 8th grade created by Shawna Hyde from released staar questions 2016-2018

Jaden needs a $2,500 loan in order to buy a car. Which loan option would allow him to pay the least amount of interest?

• An 18-month loan with 4.75% annual simple interest rate

• A 30-month loan with a 4.00% annual simple interest rate

• A 24-month loan with a 4.25% annual simple interest rate

• A 36-month loan with 4.50% annual simple interest rate

An employee put $5,000.00 in a retirement account that offers 9% interest compounded annually. The employee makes no additional deposits or withdrawals. Which amount is closest to the interest the employee will have earned at the end of 5 years?

• $229.09

• $450.00

• $2,250.00

• $2,693.12

An investor puts $2,500 into a life insurance policy that pays 8.5% simple annual interest. If no additional investments is made into the policy, how much accumulated interest should the investor expect at the end of 10 years?

• $21,250.00

• $2,125.00

• $212.50

• $21.25

Mr. McKinney deposited $2,500 in a new account at his bank.

• The bank pays 6.5% interest compounded annually on this account.
• Mr. McKinney makes no additional deposits or withdrawals.

Which amount is closest to the balance of the account at the end of 2 years?

• $2,835.56

• $2,513.00

• $2,662.50

• $2,825.00

Ms. Hyde opened an account with a deposit of $5,000.

• The account earned annual simple interest.
• She did not make any additional deposits or withdrawals.
• At the end of 4 years, the balance of the account was $6,500.

What is the annual interest rate on this account?

• 5.8%

• 7.5%

• 3.3%

• 1.9%

Leiara invested $15,000 in an account that pays 4% annual simple interest. Leiara will not make any additional deposits or withdrawals. How much interest will Leiara earn on her investment at the end of 3 years?

• $1,800

• $600

• $450

• $1,873

Shareef has $650 to deposit into two different savings accounts.

• Shareef will deposit $400 into Account I, which earns 3.5% annual simple interest.
• He will deposit $250 into Account II, which earns 3¼% interest compounded annually.

Shareef will not make any additional deposits or withdrawals. Which amount is closest to the total balance of these two accounts at the end of 2 years?

• $672.13

• $695.00

• $694.25

• $694.51

The total cost of attending state university is $19,700 for the first year.

• A student's grandparents will pay half of this cost.
• An athletic scholarship will pay another $5,000.

Which amount is closest to the minimum that the student will need to save every month in order to pay off the remaining cost at the end of the 12 months?

• $404.17

• $612.50

• $820.83

• $1,029.17

An eighth-grade student estimated that she needs $8,800 for tuition and fees for each year of college. She already has $5,000 in a savings account. The table shows the project$200ed future value of the account in five years based on different monthly deposits. The student wants to have enough money saved in five years to pay the tuition and fees for her first two years of college. Based on the table, what is the minimum amount she should deposit in the savings account every month?

• $200

• $300

• $100

• $400

BrynzLea and her family are discussing how to pay for her college education. The cost of tuition at the college that BrynzLea wants to attend is $9,000 per year. BrynzLea's parents will pay 85% of the tuition cost every year, and she will pay the rest. BrynzLea has one year to save enough money to attend her first year of college. What is the minimum amount of money she should save every month in order to reach her goal?

• $637.50

• $1,350.00

• $112.50

• $28.12