Financial Literacy

Keenan has $3000 in a savings account. The interest rate is 10% per year and is not compounded. How much interest will he earn in 3 years?

• $3993

• $993

• $900

• $3900

Collette has $55,689 in a savings account that earns 2% interest per year. The interest is not compounded. How much will she have in total in 4 years?

• $60144.12

• $51233.88

• $445512

• $4455.12

Mark has $6000 in an account. The interest rate is 6% compounded annually. To the nearest cent, how much will he have in his account in 5 years?

• $8029.35

• $2029.35

• $1800

• $7800

Ernesto deposited $1272.58 in an account earning 10.8% interest compounded annually. To the nearest cent, how much interest would he have earned over the course of 4 years?

• $1822.33

• $645.40

• $1917.98

• $549.75

Which of the following is NOT an example of an expense?

• Books and supplies

• Room and board

• Scholarships and grants

• Tuition

Shawn puts $4000 in an account that earns simple interest a a rate of 18%. Gus puts $3500 in an account that earns compound interest at a rate of 16%. What will be the difference in the total amounts Shawn and Gus have in their accounts at the end of 7 years, and who will have more money?

• Shawn will have $851.77 more than Gus

• Shawn will have $4851.77 more than Gus

• Gus will have $4851.77 more than Shawn

• Gus will have $851.77 more than Shawn

Jane takes out a $15000 loan to buy a new car. She qualifies for a 7% interest rate, and her loan is a 6 year term with monthly payments of $295.83. What will be Jane's total cost of repayment?

• $22510.96

• $21299.76

• $1774.98

• $6300

Tony has $2600 in credit card debt with 13.5% interest that he wants to pay off in 9 months. He will need to make monthly payments of $422.39 each month. Calculate the total cost of repayment and the interest Tony will pay.

• Tony will pay a total of $23400. $20800 will be interest.

• Tony will pay a total of $2863.25. $263.25 will be interest.

• Tony will pay a total of $2600. $422.39 will be interest.

• Tony will pay a total of $3801.51. $1201.51 will be interest.

In regards to credit, what is interest?

• Money borrowed with the expectation of future repayment

• The charge for the privilege of borrowing money

• The act of repaying a loan

• The smallest amount a consumer should pay each month in order to avoid fees and maintain good credit history

Lizzie wants to attend a 4-year university that costs $27000 per year. She qualifies for $2500 in scholarship money and her parents contribute $3000 towards her first year. Lizzie wants to save to pay the remaining balance over the course of the next year. How much will she need to save each month so she can pay for her first year of college?

• $1791.67

• $2208.33

• $8541.67

• $416.67