Financial Mathematics Pre Test

Dan borrowed $2,000 for 6 months at 12% annual simple interest rate. How much interest is that?

• $120
• $144
• $1,200
• $1,440

Tags

CCSS.7.RP.A.3

What a borrower pays a lender for the temporary use of the lender's money.

• share

• term

• Interest

• principal

The amount of time for which a loan is made (the amount of time until the loan is repaid).

• Term

• Years

• Maturity date

• Maturity value

Tags

CCSS.8.EE.C.7B

Bill loans Ted $5,000 for 18 months. Ted agrees to pay 8.5% annual simple interest for one year. How much will he pay Bill when the time is up?

• $637.50

• $5,637.50

• $7,650

• $12,650

Tags

CCSS.7.RP.A.3

Single, Married Filing Joint, and Head of the Household are all examples of___ on a tax return.

• filing status
• standard deductions
• itemized deductions
• dependents

• 7.8125

• .08125

• .078125

• .78125

All of the following are types of retirement accounts except...

• 401K

• Pension Plan

• 403(b)

• Brokerage Account

Tags

CCSS.7.NS.A.1C

A Money Market Account earns the account holder more interest than a Savings Account

• True

• False

Tags

CCSS.8.F.A.2

CCSS.HSF.IF.C.9

Joe is 25 years old and hopes to be able to retire 45 years from now at the age of 70. To make sure he can do this, he starts making deposits into an investment account that he assumes can earn 9% on average. He will be making biweekly deposits from his paycheck. His goal is to have $1 million in the account. How much should each deposit be?

• $147.45

• $67.01

• $215.15

• $466.31

An account earning 15% APR compounded monthly starts with x dollars. The value after 3 years in the account is $390.99. Find the value of x.

• $250

• $65

• $135

• $205