8.12A-G - Personal Financial Literacy

A customer will borrow $12,000 to buy a car. Which loan option would allow the customer to pay the least amount of interest?

• A 4-year loan with a 5.2% annual simple interest rate

• A 5-year loan with a 4.2% annual simple interest rate

• A 6-year loan with a 4.7% annual simple interest rate

• A 3-year loan with an 8.4% annual simple interest rate

Tags

CCSS.7.RP.A.3

Two customers took out loans from a bank. Henry took out a 4-year loan for $5,000 and paid 4.2% annual simple interest. Ingrid took out a 6-year loan for $5,000 and paid 3.9% annual simple interest. What is the difference between the amounts of interest Henry and Ingrid paid for their loans?

• $417

• $150

• $60

• $330

Tags

CCSS.7.RP.A.3

A business owner opens a new investment account with a $10,000.00 deposit. The investment account earns 2.5% interest, compounded annually. How much interest will the investment account earn at the end of the first year?

• $250.00

• $500.00

• $506.25

• $562.50

Tags

CCSS.HSF.BF.A.2

Monica wants to open a savings account with a deposit of $3,000. She will not make any additional deposits or withdrawals after opening the account. Her bank offers two different savings accounts. Account X pays 2.1% simple annual interest, and Account Y pays 2.4% interest compounded annually. Which statement about these accounts at the end of 5 years is true?

• Account X would earn Monica about $62.70 more interest than Account Y.

• Account Y would earn Monica about $62.70 more interest than Account X.

• Account X would earn Monica about $45.00 more interest than Account Y.

• Account Y would earn Monica about $45.00 more interest than Account X.

Larry put $1,287 into a savings account 8 years ago. The account earned 4% simple annual interest. He made no additional deposits or withdrawals. Based on this information, what is the balance in dollars and cents in Larry’s savings account at the end of these 8 years?

• $1,500.00

• $1,689.84

• $1,287.00

• $1,400.00

Tags

CCSS.7.RP.A.3

A student’s parents invested $5,000 in a college savings account that pays 4.85% annual simple interest. No additional deposits or withdrawals will be made. Which amount is closest to the interest earned on the account at the end of 15 years?

• $5,174.11

• $10,174.11

• $3,637.50

• $8,637.50

Tags

CCSS.7.RP.A.3

Mr. Jenkins deposited $1,250 into an account. He made no additional deposits or withdrawals. Mr. Jenkins earned 4.25% annual simple interest on the money in the account. What was the balance in dollars and cents in Mr. Jenkins’s account at the end of 4 years?

• $1,462.50

• $1,500.00

• $1,400.00

• $1,475.00

Tags

CCSS.7.RP.A.3

An employee put $5,000.00 in a retirement account that offers 9% interest compounded annually. The employee makes no additional deposits or withdrawals. Which amount is closest to the interest the employee will have earned at the end of 5 years?

• $229.09

• $450.00

• $2,250.00

• $2,693.12

Tags

CCSS.HSF-LE.A.1C

An investor puts $2,500 into a life insurance policy that pays 8.5% simple annual interest. If no additional investment is made into the policy, how much accumulated interest should the investor expect at the end of 10 years?

• $21,250.00

• $2,125.00

• $212.50

• $21.25

Tags

CCSS.7.RP.A.3

Mr. Wilkins deposited $2,500 in a new account at his bank. The bank pays 6.5% interest compounded annually on this account. Mr. Wilkins makes no additional deposits or withdrawals. Which amount is closest to the balance of the account at the end of 2 years?

• $2,835.56

• $2,513.00

• $2,662.50

• $2,825.00

Tags

CCSS.HSF-LE.A.1C