Financial Math Test Review (October 2023)

Ethan borrowed $2,190 for a new dirt bike. He will pay the money back in 3 years with a simple interest rate of 2.5%. How much interest will he pay?

• $164.25

• $172.75

• $1,642.50

• $1,727.50

Colton took out a loan from the bank to purchase a car. If he borrowed $17,240 at a simple interest rate of 8.25%, how much total will he have paid after 5 years?

• $ 7111.50

• $ 21, 548.90

• $ 22,890.75

• $ 24,351.50

The amount of money that you borrow (loan amount).

• Credit

• Interest

• Principal

• APR

The amount of time that you have to make payments on a loan

• Loan Term

• Grace Period

• Maturity Date

• Interest

What is the difference between loan principal and interest?

• The loan principal is the interest charged on the borrowed amount, while the interest is the initial amount borrowed.

• The loan principal is the total amount borrowed, while the interest is the amount paid back over time.

• The loan principal is the additional amount charged for borrowing the money, while the interest is the initial amount borrowed.

• The loan principal is the initial amount borrowed, while the interest is the additional amount charged for borrowing the money.

The higher your FICO credit score....

• the higher your interest rates will be.

• the worse your credit.

• the lower your interest rates will be.

• the worse you are at managing money.

Which of the following is a long-term goal?

• Buying a car
• Making a credit card payment
• A family vacation
• Saving for retirement

If an individual has total assets of $175,000 and $125,000 in liabilities, what is their net worth?

• $300,000
• $50,000
• $175,000
• $125,000

Which of the following equations calculates net pay?

• Gross pay - deductions = net pay
• Deductions + taxes paid = net pay
• Withholdings + tax deductions = net pay
• Deductions - gross pay = net pay

Which of the following types of interest stays the same even if the market interest rates change?

• Annual
• Variable
• Fixed
• Irregular