QUIZ: Ch. 2.1 and 2.3 (Math for Finance)

This type of account is primarily designed for spending and also grants you the ability to write checks:

• Checking Account

• Savings Account

• Money Market Account

• Brokerage Account

These 2 types of accounts are primarily designed to grow your money & typically earn you the highest interest rates:

(MUST SELECT TWO ANSWER CHOICES)

• Checking Account

• Savings Account

• Money Market Account

• Health Savings Account

Which of the accounts listed below is specifically designed to earn you the most interest on your money:

(*Not true today with varying interest rates at each bank, but this was created to earn you the most interest)

• Checking Account

• Savings Account

• Money Market Account

• Health Savings Account

Match the following definitions and their terms

• Maturity

• The date on which a financial agreement ends, triggering a payment to some person or business

• Principal

• The percentage rate that is paid by a bank

• Minimum Balance

• The amount of money that a customer must have in order to be eligible for certain services, such as opening a bank account

• Interest Rate

• The amount of money in an account

Tags

CCSS.6.RP.A.3C

Definition: An investment product offered by financial institutions that states there's a specific sum of money on deposit and guarantees the payment of the principal (+) a fixed interest rate after a certain period of time, usually after 6-months to 1-year of time. *You can be penalized for withdrawing the money before the maturity date.*

• Check Book

• Certificate of Deposit

• Money Market Account

• Savings Account

Tags

CCSS.6.NS.C.7C

[Ch. 2.1 Notes, Question #1] What is the maximum interest rate you can earn by placing your money in Credit Union of New Jersey's Checking Account?

• 6.00%

• 5.50%

• 5.00%

• 4.50%

Tags

CCSS.8.EE.A.2

[Ch. 2.1 Notes, Question #2] What % interest does VyStar offer on their Checking Accounts?

• 1.10%

• 2.10%

• 3.10%

• 0.10%

Tags

CCSS.6.RP.A.3C

Mr. Brown deposits $69,000 into a Savings Account that pays 3.5% simple interest. He keeps the money in the account for 5 years, not making any deposits or withdrawals. How much total interest will he earn after 5 years?

Tags

CCSS.7.RP.A.3

Mr. Yancey estimates that it'll cost $200,000 to send his baby girl to college in 18 years. He currently has $35,000 deposited into the account. What simple interest rate would he need in order for his $35,000 to grow into $200,000 in 18 years? Round to the nearest percent.

(Sample answer: 55%)

Tags

CCSS.6.EE.B.7

Mr. Aftuck has a bank account that pays 5.5% simple interest. His balance is $78,000. How many years will it take for the account to grow to $90,000? Round to the nearest tenth.

(Sample answer: 7.5)

Tags

CCSS.6.EE.B.7