Unit 11 Review - Financial Literacy

Two customers took out loans from a bank.

• Henry took out a 4-year loan for $5,000 and paid 4.2% annual simple interest.

• Ingrid took out a 6-year loan for $5,000 and paid 3.9% annual simple interest.

What is the difference between the amounts of interest Henry and Ingrid paid for their loans?

• $417

• $150

• $60

• $330

Tags

CCSS.7.RP.A.3

Mr. Jenkins deposited $1,250 into an account. He made no additional deposits or withdrawals. Mr. Jenkins earned 4.25% annual simple interest on the money in the account. What was the balance in dollars and cents in Mr. Jenkins’s account at the end of 4 years?

Tags

CCSS.7.RP.A.3

Gabriel deposits $2,500 into each of two savings accounts.

• Account I earns 4% annual simple interest.

• Account II earns 4% interest compounded annually.

Gabriel does not make any additional deposits or withdrawals. What is the sum of the balances of Account I and Account II at the end of 3 years?

• $5,600.00

• $5,612.16

• $5,624.32

• $5,200.00

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

Tags

CCSS.HSF-LE.A.1C

An investor puts $2,500 into a life insurance policy that pays 8.5% simple annual interest. If no additional investment 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

Tags

CCSS.7.RP.A.3

The total cost of attending a 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 12 months?

• $404.17

• $612.50

• $820.83

• $1,029.17

Tags

CCSS.7.EE.B.4A

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

• An 18-month loan with a 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 a 4.50% annual simple interest rate

Tags

CCSS.7.RP.A.3

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 projected 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?

• $300

• $100

• $200

• $400

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

• The bank pays 6.5% interest compounded annually on this account.

• Mr. Wilkins makes no additional deposits or withdrawals.

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

• $2,513.00

• $2,835.56

• $2,662.50

• $2,825.00

Tags

CCSS.HSF-LE.A.1C

Mr. Flores opened an account with a deposit of $5,000.

• The account earned annual simple interest.

• He 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%

• 3.3%

• 7.5%

• 1.9%

Tags

CCSS.7.EE.B.4A