Unit 7 Financial Literacy

Find the simple interest earned for principal of $2,000 at and 8% rate for 5 years.

• $160

• $800

• $80,000

• $16

Find the simple interest earned when the principal is $500 at a rate of 10% held in the bank for 8 months.

• $33.50

• $40,000

• $50

• $400

When Loofa was born, her parents put $8,000 into a college fund account that earned 9% simple interest. Find the amount of interest earned after 18 years.

• $720

• $20,960

• $1,080

• $12,960

How much interest would you earn if you deposited $575 for 3 months at 2.88% simple interest?

• $4.14

• $4,968

• About $400

• $1,725

The simple interest formula is I=Prt.  The P represents the principle.  The principle is ___________________.  

• the amount of money borrowed or deposited
• the percent interest for his year
• the amount taxed
• the amount the bank owes you for being a customer at their bank

Emilio borrows $1200 from a bank with 8% simple interest per year.  How much will he have to pay back total in 2 years?

• $150
• $192
• $1350
• $1392

Beyonce went to the mall and saw a massage chair that she would have to take a loan out for $6,500 to purchase.  The bank said that she could get a simple interest rate of 8% for 5 years.  What is the total amount that Beyonce will pay for the chair?

• $2600
• $910
• $9100
• $260

Assets-Liabilities=

• assets

• expenses

• net worth

• savings

Which of the following is considered an asset?

• credit card debt
• savings
• car payoff
• student loan

Assets are best described as

• monetary assets you own
• financial debts and obligations for which you owe
• your net worth
• adjusted gross income