Interest/Net Worth Review

What is interest?

• Total amount of money

• Rate, as a percent

• Amount paid for the use of money

• Time, in years

Michael borrowed $5000 at 4% for 24 months.

Michael earned how much interest?

Use I=Prt

• $800

• $4,800

• $400

• $40

Cameron earned $480 babysitting last summer. She invested the money at 4.5% f0r 5 years. What is the total amount of money Cameron will have after 5 years?

Step 1: Use I=Prt to find interest

Step 2: Use A= I + P to find the total amount

• $108

• $588

• $8640

• $11280

Property owned by a person or company, regarded as having value is an __________

• asset

• liability

• net worth

• pizza

Assets=$20,000

Liabilities=$50,000

What is the net worth?

• $80,000

• - $80,000

• $30,000

• - $30,000

You can have negative Net Worth.

• True

• False

The table below shows Claude's assets and liabilities. Which group below is assets?

• house payoff, credit card debt

• car(paid off), cash, savings, artwork

The table below shows Claude's assets and liabilities. What is the total value of his assets?

• $24,950

• $25,420

• -$24,950

• $50,370

The table below shows Claude's assets and liabilities. Which group below is liabilities?

• house payoff, credit card debt

• car (paid off), cash, savings, artwork

The table below shows Claude's assets and liabilities. What is the total value of his liabilities?

• $24,950

• -$24,520

• $25,420

• $50,370