Financial Literacy Quiz for Grade 12 Students

John invests $1000 in a savings account that offers a simple interest rate of 5% per annum. How much interest will John have earned after 2 years?

• $50

• $100

• $150

• $200

If you invest $500 at a compound interest rate of 4% annually, how much will the investment be worth after 3 years?

• $562.43

• $563.25

• $564.99

• $565.05

Imagine you invested in a savings account that earns simple interest. If you earn $200 as simple interest at a rate of 5% per annum after 4 years, what was the principal amount you invested?

• $1000

• $800

• $500

• $400

John checks his paycheck and wonders, what does net pay refer to?

• The total amount of money earned before any deductions

• The amount of money earned after taxes but before other deductions

• The amount of money received after all deductions including taxes

• The total amount of money before taxes but after insurance deductions

Imagine you've just bought a new car and are looking into insurance options. What does the term 'premium' refer to in this context?

• The amount you pay when you receive repair services after an accident

• The amount you pay for your car insurance coverage on a monthly or annual basis

• The amount you must pay before your car insurance covers any repair expenses

• The amount you pay after receiving repair services, in addition to your insurance

Imagine you've just started your first job. You receive your first paycheck and notice two different amounts listed: 'Gross Pay' and 'Net Pay'. What is the difference between these two amounts?

• Gross pay is before taxes and deductions; net pay is after taxes and deductions.

• Gross pay includes only hourly wages; net pay includes bonuses and overtime.

• Gross pay is after taxes but before other deductions; net pay includes all deductions.

• There is no difference; they are interchangeable terms.

• $500

• $1500

• $2000

• $0

Imagine you visit a doctor for a consultation, and your health insurance plan includes a copay. What does this copay refer to?

• A fixed amount paid for a covered service, after you've paid your deductible

• The total amount you must pay before your insurance starts to pay

• A percentage of the total cost of a service that you must pay

• The monthly or annual cost of your insurance policy

Imagine you're a financial analyst. Your client receives dividend payments from their investment in a company that distributes profits quarterly. How many dividend payments does your client receive in a year?

• 2

• 4

• 12

• 6

• $1700

• $2000

• $2300

• $300