AVID Literacy Quizz

The longer a loan repayment period and the higher the interest rate, the... 

• larger the total amount of interest paid by a borrower.

• smaller the total amount of interest paid by a borrower.

• larger the total amount of interest paid by a lender.

• smaller the total amount of interest paid by a lender.

• I’m not sure

Why is maintaining good credit important?

• Can help you graduate from college

• Allows you to borrow at lower interest rates

• Allows you to carry more cash than usual

• Might cause your interest rates to be raised

• I'm not sure

 Before Anissa bought groceries on March 23rd, she had a balance of $487.25 in her checking account. What is her account balance after she made a cash deposit on March 25th?

• $429.75

• $547.75

• $574.75

• $399.75

• I'm not sure

Karl purchased a secons, larger home in which to live. He has decided to rent his first home out for $1,500 a month. His mortgage on the first home is $1,250. Is this an example of passive income?

• Yes

• No

Ann puts $300 in a bank account earning 4% interest. How much will she earn in interest in 1 year?

• 4

• 8

• 12

• 16

Nadia deposited $3000 into an account that earns annual simple interest. After 6 years, she had earned $990 in interest. What was the INTEREST RATE of the account?

Simple interest is calculated on the _____ amount only. Select all that apply.

• final

• principle

• withdrawn

• deposited

Aaron created the table to help him estimate the total cost of his first year at a public university.

Aaron's grandfather gave him a $12,000 gift to use towards his college expenses, and Aaron received a $1,500 academic scholarship. Including his gift and scholarship, what should Aaron estimate the total cost of his first year to be?

• $5,392.50

• $35,070

• $21,570

• $8,070

16. How much does it cost to file the FAFSA?

• It is free
• It is free the first time you file, but costs $9.99/year thereafter
• It is 2% of your total loan amount
• $50

Medicare and Social Security are mandatory spending categories funded by which type of taxes that are withheld from your paycheck?

• Local

• State

• Federal

• FICA