Quiz 3 Interest Rates and Bank Statements

Interest is...(choose 2!)

• A reward for saving

• A fee for saving

• A reward for borrowing

• A fee for borrowing

The formula for calculating simple interest is P x R x T. What does the P stand for?

• Principle

• Pound

• Pay

• Price

The formula for calculating simple interest is P x R x T. What does the R stand for?

• Recession

• Rate

• Receipt

• Ratio

The formula for calculating simple interest is P x R x T. What does the T stand for?

• Tax

• Time

• Tariff

• Target

Using the SIMPLE INTEREST FORMULA (PxRxT), calculate the interest if £1,000 was kept in a savings account for two years at 2% interest.

• £20

• £40

• £60

• £80

Why do banks pay their customers interest on their savings? (Choose more than 1!)

• It attracts people to save with them

• They can use your money to lend it to borrowers

• They want to keep their customers happy

Which of the following pieces of information would you find on a bank statement? (Choose 2!)

• Name

• Address

• Date of birth

• Your parent's names

What do we call it when you go in to "minus" in your bank account and you owe the bank some money?

• Overdraft

• Mortgage

• Credit card

• Debit card

When you see "payments" on your bank statement, that means the money is...

• Coming out

• Going in

When you see "receipts" on your bank statement, that means the money is...

• Coming out

• Going in