FIN242

The amount money a person expects to have in the future is called

• Principal
• Future Value
• Simple Interest
• Present Value

Tags

CCSS.8.EE.C.7B

Earning interest on interest is called

• Extra Interest
• Simple Interest
• Inflation Interest
• Compound Interest

The idea that money to be paid out or received in the future is not equivalent to money paid out or received today

• SMART Money
• Time Value of Money
• PV/FV Money
• Compound Money

Tags

CCSS.8.EE.C.7B

You invest $475 in an account that pays 3% simple interest annually.  How much money do you have after five years? 

• $546.24
• $544.46
• $543.25
• $546.25

You invest $800 in an account that pays 6% interest, compounded annually.  How much money do you have after five years?  Round your answers to the nearest cent. 

• $898.09
• $1070.58
• $1710.58
• $975.68

Steady rise in the general level of prices is known as

• Inflation
• Interest
• Time Value of Money
• Principal

Katie invested $6,500 in a savings account earning 12% interest compounded quarterly.  What is the future value of this investment after five years? Round your answers to the nearest cent. 

• $1,235,322.65
• $6,895.85
• $11,739.72
• $6,901.32

What is the value of the highlighted number? 11.560

• .60

• .06

• 6.0

• .006

If you save RM5,000 today in 3-month fixed deposit, with interest 10% per annum, how much would you received when you uplift the deposits at the end of second month.

• RM5,000

• RM5,050

• RM5,083.33

With Compound Interest, you work out the interest for the first period, add it to the total, and then calculate the interest for the next period, and so on.

• True

• False