Financial Literacy: Lesson 8 Calculating Interest

What is the main focus of financial literacy for kids in this video?

• Investing in stocks

• Calculating interest

• Understanding taxes

• Budgeting expenses

Why do people borrow money?

• To pay for vacations

• To buy groceries

• To save for retirement

• To donate to charity

What happens when you save money in a bank?

• You get a loan

• You pay interest

• You earn interest

• You lose money

What is the term for the amount of money you start with when saving or borrowing?

• Interest

• Rate

• Principal

• Deposit

What does the rate represent in the context of interest?

• The amount of money saved

• The time period of the loan

• The percentage charged or earned

• The total interest earned

What is the formula for calculating simple interest?

• Interest = Principal / Rate / Time

• Interest = Principal x Rate x Time

• Interest = Principal - Rate - Time

• Interest = Principal + Rate + Time

If Frankie saves $200 at an interest rate of 15% per year, how much interest will she earn in one year?

• $15

• $20

• $30

• $40

How much total money will Frankie have after 5 years if she saves $200 at an interest rate of 15% per year?

• $400

• $350

• $300

• $250

If Frankie borrowed $200 at a rate of 15% per year, how much would she owe after one year?

• $215

• $260

• $230

• $245

How much would Frankie owe in total after 5 years if she borrowed $200 at a rate of 15% per year?

• $350

• $320

• $370

• $300