CMB 10.1-10.2 Review

Circle how you are feeling this morning :)

What is the name of a savings account that offers higher interest rates, but in which a person's money must stay deposited for a specific amount of time?

• CD

• Money market account

• Savings account

• DVD

What is the type of fee charged for withdrawing money from a CD before the date of maturation?

• Liquidity fee

• Early redemption fee

• FDIC fee

• DVD fee

True or False: CD ladder is the name of the investment strategy in which a person invests equal amounts in different CDs with different maturity dates.

• True

• False

Tags

CCSS.4.NF.A.1

CCSS.5.NF.B.5B

Suppose you buy a CD for $300 that earns 3% APR and is compounded quarterly. The CD matures in 3 years. How much will this CD be worth at maturity?

Use the online compound growth calculator

Tags

CCSS.HSF-LE.A.1C

Suppose Maurice buys a CD for $400 that earns 2.5% APR and is compounded monthly. The CD matures in 3 years. How much will Maurice's CD be worth at maturity?

Use the online compound growth calculator. 

What is the name of a financial product offered by insurance companies to which a person makes contributions and immediately or later begins receiving payments?

• CD

• Annuity

• Money market account

• DVD

XYZ Insurance offers an annuity with 5% APR for the next ten years. You decide to invest $1000 each year into this account. What type of annuity is this?

• Single-payment fixed annuity

• Single-payment variable annuity

• Recurring-payment fixed annuity

• Recurring-payment variable annuity

Tags

CCSS.HSF.BF.A.2

Meeko Insurance offers an annuity with a minimum interest rate of 3% for the next 5 years. You decide to invest $5000 into this account. What type of annuity is this?

• Single-payment fixed annuity

• Single-payment variable annuity

• Recurring-payment fixed annuity

• Recurring-payment variable annuity

Tags

CCSS.HSF.BF.A.2

Michael invests $2000 in an annuity that offers an interest rate of 4% compounded quarterly for 5 years. What is the value of Michael's investment after 5 years?

Use the online compound growth calculator

Tags

CCSS.HSF-LE.A.1C