Personal Financial Literacy REVIEW

• Light Bulb = $0.28, Pot = $0.64, Mug = $3.84

• Light Bulb = $0.28, Pot = $3.84, Mug = $0.64

• Light Bulb = $3.84, Pot = $0.28, Mug = $0.64

• Light Bulb = $3.84, Pot = $0.64, Mug = $0.28

• Interest = $1,140, Total Value = $540

• Interest = $60, Total Value = $660

• Interest = $540, Total Value = $1,140

• Interest = $837.93, Total Value = $1,437.93

• Interest = $12,373.50, Total Value = $23,373.50

• Interest = $12,373.50, Total Value = $1,373.50

• Interest = $1,320, Total Value = $12,320

• Interest = $1,373.50, Total Value = $12,373.50

• Interest = $141.08, Total Value = $891.08

• Interest = $891.08, Total Value = $1,641.08

• Interest = $891.08, Total Value = $141.08

• Interest = $135, Total Value = $885

8. Use what you know about simple and compound interest earnings to fill in each blank:

•Simple interest is calculated on the____________ amount only.

•Compound interest is calculated on the ____________ amount plus any previous __________earned.

• interest, principal, principal

• principal, total amount, interest

• principal, principal, interest

• interest, total amount, interest

9. Adrienne and her brother, John, each inherit $7,000 that they use to open savings accounts. Adrienne’s account earns 4% annual compound interest, and John’s account earns 4% annual simple interest. Neither makes any additional deposits or withdrawals for 5 years.

a. Whose account will be worth more at the end of 5 years?

b. How much more will the account be worth?

• a. Adrienne, b. $116.57

• a. John, b. $116.57

• a. Adrienne, b. $1,516.57

• a. John, b. $1,516.57