WorksheetsUnit 1 Review
Total questions: 11
Worksheet time: 22mins
What is the purpose of a checking account?
An account to save your money
An account to lock your saved money away and earn more interest
An account for your everyday spending
None of the above
What is the purpose of a savings account?
An account to save your money
An account to lock your saved money away and earn more interest
An account for your everyday spending
None of the above
What is the purpose of a Certificate of Deposit (CD)?
An account to save your money
An account to lock your saved money away and earn more interest
An account for your everyday spending
None of the above
What is the difference between a commercial bank and an investment firm?
The investment firm offers everything a bank offers + investment services
A commercial bank is the same as an investment firm
An investment firm does not offer the same services that a commercial bank offers - only investment services
None of the above
MATH - Simple Interest
Amanda is buying a $5,000 car and she needs to finance $3,500 of it. She was approved at Cardinal Bank for a 2 year loan at 3.5% interest.
What is the total price of the car loan , with interest included?
HINT: Make sure you convert your interest to a decimal by moving it to the left 2 times
Step 1: Calculate the simple interest using the equation we learned in our notes & practiced on our assignment
Step 2: Add the simple interest back to the principal amount of the loan
$245
$350
$3,745
$5.350
MATH - Simple Interest
Kevin is buying a $17,000 car and he needs to finance all of it. He was approved at Cardinal Bank for a 3 year loan at 4.3% interest.
What is the total price of the car loan , with interest included?
HINT: Make sure you convert your interest to a decimal by moving it to the left 2 times
Step 1: Calculate the simple interest using the equation we learned in our notes & practiced on our assignment
Step 2: Add the simple interest back to the principal amount of the loan
$2,193
$19,193
$17,193
None of the above are correct
You want to open a checking account. What do you need?
ID
Initial deposit $ ($25-100.. whatever the bank requires)
Parent , if you are under 18
ALL of the above
When you earn interest at a bank, what is the typical period for that interest rate?
Monthly
Yearly (Annually)
Weekly
Daily
Which of the following is an OPPORTUNITY COST of being here?
Sleep
Working
Spending time with friends
ALL of the above
SINKING FUND SAVINGS MATH
Alex is saving up $2,000 for a mission trip to Mexico with his church. He has 15 months to save. Do the sinking fund savings math to figure out how much he needs to save each month. Round your answer to the nearest whole dollar.
$148
$133
$152
$175
COMPOUND INTEREST MATH
CALCULATOR: https://www.investor.gov/additional-resources/free-financial-planning-tools/compound-interest-calculator (copy & paste in another tab)
Austin has $11,000 he'd like to invest in a retirement account that earns 7% annually. He plans to contribute an extra $100/month.
How much will Austin's investment be worth in 10 years?
Round your answer to the nearest whole number.
$31,150
$38,218
$25,145
$23,218
