Personal Finance Review

What type of growth does a simple interest formula produce?

• exponential

• linear

• quadratic

• negative

What type of growth does a compound interest formula produce?

• exponential

• linear

• quadratic

• negative

If interest is compounded by-weekly, how many times a year is that?

• 26

• 52

• 104

• 7

If the simple interest formula is I=Prt, how do you solve for time?

• t=IPr

• t=I/(Pr)

• t=P/(Ir)

• t=r/(PI)

Tags

CCSS.HSA.REI.B.3

What does the i equal in the compound interest formula if 6% is compounded semi-annually?

• 6

• 3

• 0.06

• 0.03

what does the n equal in the compound interest formula if 5% interest is compounded monthly for 2 years?

• 2

• 0.05

• 12

• 24

Using the TVM solver, what is the future value of a 500 dollar investment that is compounded quarterly, for 5 years at 10% interest rate?

• 819.31

• 625.45

• 805.26

• 502.51

Which compounding period would give produce the most interest (considering all other factors stayed the same)?

• weekly

• monthly

• daily

• quarterly

What would you put into the PMT portion of a TVM calculator if you invest 500 dollars for 5 years at 10% interest rate compounded quarterly?

• 0

• 1

• 500

• 5

• 10

What would you put into the P/Y portion of a TVM calculator if you invest 500 dollars for 5 years at 10% interest rate compounded quarterly?

• 0

• 1

• 500

• 5

• 10