Financial Literacy Quiz

What part of the check indicates the bank's identity?

• Payee

• Routing Number

• Memo

• Signature

What is a key advantage of Savings Accounts?

• Fixed interest rate

• More liquidity

• Early withdrawal penalties

• Limited access to funds

What is the meaning of 'r' in the context of interest calculations?

• Interest earned after t years

• Money borrowed or invested

• Annual interest rate

• Accumulated amount

Which of the following is the correct formula for compound interest?

• A = P(1 + r/n)^(nt)

• A = P + rt

• A = P(1 + rt)

• A = P(1 - r/n)^(nt)

If you deposited $1,000 and earned 6% simple interest, how much interest would you earn in one year?

• $60

• $600

• $6

• $100

If you deposited $1,000 and earned 6% simple interest, how much interest would you earn in one year?

• $60 with a new balance of $1,060

• $50 with a new balance of $1,050

• $70 with a new balance of $1,070

• $80 with a new balance of $1,080

The Rule of 72 is primarily associated with which type of interest?

• Simple interest

• Compound interest

• Fixed interest

• Variable interest

Which of the following is an example of using the Rule of 72?

• 72 ÷ 3 = 24

• 72 × 3 = 216

• 72 + 3 = 75

• 72 - 3 = 69

What does the "T" represent in the Rule of 72 formula?

• Time to triple

• Time to double

• Time to halve

• Time to quarter

If an investment doubles in 12 years, what is the approximate annual interest rate using the Rule of 72?

• 6%

• 8%

• 9%

• 12%