Monday March 23 - STAAR Review - Personal Finance

Desmond wants to attend a college that costs $15,000 for the first year. Desmond’s family has saved $6,000, and he has applied for a $1,500 scholarship. To have the full amount needed to pay for the year’s tuition, his family will set aside a fixed amount of money each month for the next 12 months.

If Desmond wins the scholarship, his family will need to save a minimum of ​ (a)   per month.

If Desmond does not win the scholarship, his family will need to save a minimum of ​ (b)   ​ per month.

• $1,125

• $750
• $1250
• $500
• $625

Tags

TEKS.8.12G

A business owner invested $10,500 into an account that pays 1.2% 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 4 years?

• $504

• $126

• $10,626

Tags

TEKS.8.12D

A business owner opens a new investment account with a $10,000.00 deposit. The investment account earns 2.5% interest, compounded annually. The business owner does not plan to make any deposits or withdrawals. How much interest will the investment account earn at the end of the first year?

The account will earn ​ ​ (a)   in interest at the end of the first year.

At the end of the second year, the account will have earned a total of ​ (b)   in interest.

• $562.50

• $250.00
• $506.25
• $500.00
• $2500
• $5625

Tags

TEKS.8.12D

A deposit of $1200 is made into each of two bank accounts. No additional deposits or withdrawals will be made for 4 years.

Account 1 earns 1.5% annual simple interest.

Account 2 earns 1.5% interest compounded annually.

Which amount is closest to the difference between the balances of the two accounts at the end of 4 years?

• $1.64

• $72.00

• $73.64

• $1.80

Tags

TEKS.8.12D

A deposit of $7912 is made into a new account that earns 5.75% simple interest. No additional deposits or withdrawals will be made for 2 years. Which amount is the closest to the balance in the account at the end of 2 years?

• $9732

• $7924

• $8822

• $8848

Tags

TEKS.8.12D

Janice deposits $4500 into an investment account that earns 4% simple interest. She makes no additional deposits or withdrawals.

Over 5 years, Janice's investment would have earned ​ ​ (a)   in interest and will have a total balance of ​ (b)  

• $900
• $5400
• $300
• $6000

Tags

TEKS.8.12D

Jack plans to deposit $500 into a new bank account that earns 2% interest compounded annually. He will make no more deposits or withdrawals.

Over a period of 2 years, how much more will he earn in interest on this account than he would if he earned simple interest at a 2% annual rate?

• $0.20

• $10.20

• $20.00

• $2.02

Tags

TEKS.8.12D