Financial Literacy Quiz Review

Charlottes' mother started a college fund on Charlotte's 10th birthday. She deposited $4,500 into an account that yields an interest rate of 0.35% compounded annually. How much money will the account have when Charlette turns 18 years old?

• $127.55

• $126.00

• $5,925.64

• $4,627.55

Sophia invests $5,675 in an account that earns 7.5% annual simple interest. Assuming she makes no additional deposits or withdrawals, how much interest will Sophia earn after 4 years? 

• $1,702.50

• $7,377.50

• $7,578.79

• $1,903.79

Which of the following is NOT financially responsible?

• Saving money from each paycheck

• Making sure you have enough money in your account before buying an item

• Looking for a student loan with the highest possible interest rate.

• Looking for a credit card with the lowest possible interest rate.

Josie paid for a $5,000 vacation by using a credit card with an 14% interest rate.  In order to pay the card off in 12 months, Josie will need to make payments of $482. Calculate the total cost of repayment as well as the amount of interest Josei will pay. (NO FORMULA!)

• Total Repayment:

  $5,482.00

  Interest:

  $480.00

• Total Repayment: $5,700.00

  
  Interest:

  $700.00

• Total Repayment:

  $5,784.00

  
  Interest:

  $784.00

• Total Repayment:

  $5,416.67

  
  Interest:

  $416.67

What is 4.5% in decimal form?

What is 0.23% in decimal form?

Emma deposits $3,000 into a savings account with an annual interest rate of 2% compounded annually. How much will Emma have in her account after 5 years?

• $3,306.04

• $3,120.00

• $3,300.00

• $3,200.00

Michael invests $8,000 in a bond that offers 5% annual simple interest. How much total interest will he earn after 6 years?

• $2,400.00

• $2,500.00

• $2,600.00

• $2,700.00