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Consumer Math - Investing

Total questions: 24

Worksheet time: 26mins

Name
Class
Date
1.
This type of schedule or table lists all payments of a loan, and tells the borrower how much of each payment goes toward the principal, as well as how much they will pay in interest over the life of the loan.
a)
delinquency
b)
amortization
c)
liquidity
2.
This term refers to the original amount of a loan OR the original amount of money invested. 
a)
Principal
b)
Interest
c)
Rebate
d)
Fixed Rate
3.

Find the balance in the account after the given period.

$5000 deposit earning 1.5% compounded quarterly after 3 years

a)

$5,229.70

b)

$7,604.38

c)

$7,777.27

d)

$5,538.86

4.

An investment of $9,875 earns 4.8% interest compounded monthly over 12 years. Approximately how much INTEREST is earned on the investment?

a)

$7,457.95

b)

$10,359.57

c)

$17,546.55

d)

$484.57

5.

Avery deposits $8000 in a one year CD at 3.2% interest, compounded daily. What is Avery's ending balance?

a)

$8,528.72

b)

$8,000.70

c)

$8,256.00

d)

$8,260.13

6.

Sue got an $8000 loan to buy a used car. Due to her bad credit, the interest rate was 16.8%. If the loan length was 60 months, how much did she end up paying for the car?

a)

$6720

b)

$14720

c)

$80,640

d)

$8672

7.

I deposited $46,875 into a simple interest, and at the end of 1 year 8 months, the account had grown to $50,000. Find the rate of interest per year.

a)

64%

b)

4%

c)

4.167%

d)

66 2/3%

8.

It is a series of equal payments at regular intervals.

a)

Interest

b)

Annuity

c)

Logic

d)

Proposition

9.

Kailee saves $500 at the end of each quarter in an ordinary annuity earning 6.2% interest compounded quarterly. How much will Kailee have saved in 20 years?

a)

Future value = 78,058.07

b)

Future value = 78,158.07

c)

Future value = 87,258.07

d)

Future value = 38,158.07

10.

John deposits $2,000 yearly into a retirement account (annuity). The account pays 7% compounded annually. How much money will be in the account after 25 years?

a)

$78,268.97

b)

$126,498.08

c)

$42,160.07

d)

$124,498.10

11.

You are purchasing a car that has a cash price of $14,979 and make a 5% down payment. Calculate the amount of your down payment.

a)

$14,230.05

b)

7,489.50

c)

$11,471.23

d)

$748.95

12.

If Terence has a balance of $439.50 on a credit card that charges a finance charge computed at 3.5%, what is the new balance? Round your answer to the nearest cent.

a)

$455.35

b)

$443.00

c)

$454.88

d)

$424.12

13.

The current balance is $306.55 on your credit card. You then make a purchase of $209.54 followed by a payment of $175.00. If the finance charge is $6.75, what is your new balance?

a)

$347.84

b)

$492.09

c)

$571.37

d)

$306.55

14.

What type of credit is demonstrated in this scenario?

Patrick took a loan of $50,000 with a repayment period of five years from a bank to start his own business. Every month he has to pay the bank $900 to repay the loan.

a)

unsecured credit

b)

secured credit

c)

revolving credit

d)

installment credit

15.

You purchase a home for $212,000 and had to put down 10% of the price of the home as a down payment. What is the principal of the loan?

a)

$21,200

b)

$190,800

c)

$233,200

16.

Use an online mortgage calculator to find the monthly mortgage payment on a house that is listed at $117,000. Your mortgage is for 15 years with an interest rate of 4.25%. Your down payment is 10%.

a)

$774

b)

$921

c)

$1,048

17.

What is the ticker symbol?

a)

KEL

b)

LOW

c)

ORLY

d)

JKHY

18.

What was the opening stock price for the day?

a)

$345.56

b)

$327.45

c)

$345.57

d)

$344.47

19.

When a company earns a profit, sometimes those profits are distributed to the company’s shareholders. This means those shareholders are paid a _________________.

a)

dividend

b)

asset

c)

stock

d)

bankrupt

20.

Buying and Selling Stocks


Randy just bought 800 shares of stock in Facebook at $19.50 per share. A stock company that you have been working with charges $10 per transaction and you want to sell because the current rate for your shares skyrocketed and is at $34.50 per share. How much did Randy buy from Facebook?

a)

800∗$34.50=$27,600.00

b)

800∗$19.50=$15,600.00

c)

$27,600−$15,600=$12,000.00

d)

$12,000.00−$20.00=$11,980.00

21.

Buying and Selling Stocks


Randy just bought 800 shares of stock in Facebook at $19.50 per share. A stock company that you have been working with charges $10 per transaction and you want to sell because the current rate for your shares skyrocketed and is at $34.50 per share. What was Randy's Sell price?

a)

800∗$34.50=$27,600.00

b)

$27,600−$15,600=$12,000.00

c)

$12,000.00−$20.00=$11,980.00

d)

800∗$19.50=$15,600.00

22.

An interest bearing account into which we make a series of payments of the same size is known as

a)

A savings account

b)

An annuity

c)

A checking account

d)

A mortgage

23.

The type of account that pays interest on both the principal and the accrued interest uses calculations involving

a)

Simple interest

b)

Compound interest

c)

Annuities

d)

mortgage

24.

If you get a paycheck every other Friday for $1400, what is your monthly take-home pay?

a)

$2800

b)

$3042

c)

$2585