Unit 6 Test - Managing Personal Finances

What is Gross Pay?

• amount paid to the worker AFTER deductions

• the total amount earned for work

• amount that is NOT included in the paycheck, gets sent to IRS

What is Net Pay?

• amount paid to the worker AFTER deductions

• the total amount earned for work

• amount that is NOT included in the paycheck, gets sent to IRS

What is Budget?

• a fixed payment that is paid for a service

• a partial refund that is paid back to the consumer

• an estimate of income and expenses for a period of time

What is a savings account for?

• money that you will need daily access to

• money that you do NOT spend frequently

What is a CD?

• a disk you play music off of
• a special savings account that you won't touch for a specific amount of time
• a checking account

What is principal?

• a person who runs the school
• a type of plant
• the starting amount of $$

What is interest?

• $$ the bank pays you for letting them keep your money
• the state of wanting to know something
• curiosity

What does the "t" stand for in the equation I = prt?

• time in days
• time in months
• time in years

How is compound interest different than simple interest?

• the interest rate gets recalculated over time, bringing more money in
• the interest rate stays the same, money only gets added to the principal

Your checking account is more like what everyday item?

• phone
• car
• wallet