Fin Ed

What is Interest?

• Money the bank pays you to use your money

• Money that appears in your pocket from carrying cash

• Money you get paid by your employer at the end of every year

• When you lose a lot of money

What is "principal" in a financial sense?

• Sarah Mark-Stewart

• The total amount of expenses you have

• The starting amount of money to earn interest

• All of the money that you have

What is the "Annual rate of Interest"?

• Your overall net worth for the year

• The percentage an investor will earn on an investment each year

• The amount of money your job pays you each year

• The amount you pay in taxes each year

What is "simple interest"?

• The amount of interest earned on the principal only

• The only kind of interest ever used

• The interest you have in activities that you enjoy

• The interest that is earned on the principal and the interest already earned

What is "compound interest"?

• The interest that is earned on the principal and the interest already earned

• The amount of interest earned on the principal only

• The percentage an investor will earn on an investment each year

• When you hit a stack of money really hard

What is "federal withholding"?

• When you make a budget to make sure you're properly paying back the federal government

• When you deposit money at the bank and save it in a special federal withholding account

• When the federal government freezes your bank accounts until you pay them what is owed

• The amount of money the federal government takes off of every paycheck for taxes

What is "income"?

• the money you earn

• the money you spend

• the money you save

• the money you invest

What are expenses?

• the money you spend

• the money you earn

• the money you invest

• the money you save

Which of these is a FIXED expense?

• Food

• Gift/Charities

• Gasoline

• Mortgage/Rent

Which of these is a VARIABLE expense?

• Property Tax

• Utilities

• Insurance

• Mortgage/Rent