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finance 4.1, 4.2

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

compound interest

a)

interest that accumulates on the principal and the accrued interest

b)

the percentage gain or loss of an investment over a specified period

c)

the percentage of principal charged by the lender for loaning money

d)

banana

2.

Future value

a)

The value of an asset sometime in the future based on an assumed rate of growth

b)

the percentage of principal charged by the lender for loaning money.  

c)

Interest that is earned on the principal amount of investment, calculated by multiplying the interest rate (percentage) by the principal amount.

d)

Interest that accumulates on the principal and the accrued interest.         

3.

Interest Rate

a)

The increase in prices over a specific period of time, usually shown as a percentage.

b)

The concept that an amount of money is worth more today than the same amount of money is worth in the future.

c)

apple

d)

The percentage of principal charged by the lender for loaning money.

4.

Inflation

a)

The percentage gain or loss on an investment over a specified period of time.

b)

The value of an asset sometime in the future based on an assumed rate of growth.

c)

The increase in prices over a specific period of time, usually shown as a percentage.

d)

The concept that an amount of money is worth more today than the same amount of money is worth in the future.

5.

Present Value

a)

The percentage gain or loss on an investment over a specified period of time.

b)

The current value of a stream of future cash flows, discounted at a certain rate.

c)

The concept that an amount of money is worth more today than the same amount of money is worth in the future.

d)

The value of an asset sometime in the future based on an assumed rate of growth.

6.

Rate of Return (ROR)

a)

The increase in prices over a specific period of time, usually shown as a percentage.

b)

The concept that an amount of money is worth more today than the same amount of money is worth in the future.

c)

Interest that accumulates on the principal and the accrued interest.        

d)

The percentage gain or loss on an investment over a specified period of time.

7.

Simple Interest

a)

Interest that is earned on the principal amount of investment, calculated by multiplying the interest rate (percentage) by the principal amount.

b)

The percentage of principal charged by the lender for loaning money.    

c)

inflation

d)

The percentage gain or loss on an investment over a specified period of time.

8.

Financial Needs

a)

Targets to achieve in order to meet your future financial needs and wants.

b)

The money required to meet your daily and future needs.

c)

 Purchasing an asset with the hope that it will produce income or a profit.

d)

The intentional act of not spending income, and setting it aside to use in the future.

9.

Financial Goals

a)

Purchasing an asset with the hope that it will produce income or a profit.

b)

The money required to meet your daily and future needs.

c)

 The intentional act of not spending income, and setting it aside to use in the future.

d)

Targets to achieve in order to meet your future financial needs and wants.

10.

Investing

a)

Purchasing an asset with the hope that it will produce income or a profit.

b)

The money required to meet your daily and future needs.

c)

Targets to achieve in order to meet your future financial needs and wants.

d)

The intentional act of not spending income, and setting it aside to use in the future.

11.

Saving

a)

The intentional act of not spending income, and setting it aside to use in the future

b)

 Purchasing an asset with the hope that it will produce income or a profit.

c)

Targets to achieve in order to meet your future financial needs and wants.

d)

The money required to meet your daily and future needs.

12.

When you purchase and asset with the hope/intent of making a return, thereby putting your money to work to make more money, that is called

a)

inflation

b)

stock market

c)

interest rate

d)

investing

13.

How much money should individuals save in an emergency fund?

a)

three to six months of expenses

b)

1 day of expenses

c)

10 years of expenses

d)

14 weeks of expenses

14.

The intentional act of not spending income, and setting it aside to use in the future, is called

a)


saving

b)

being smart

c)


compound interest

d)

financial needs

15.

Someone who is saving a specific amount money to buy a new laptop computer for her business that she will run out of her home is being intentional about

a)

learning how to use her laptop

b)

future retirement

c)


setting a financial goal

d)

recessions

16.

that an amount of money is worth more today than the same amount of money is worth in the future, is called

a)

time value of money

b)


present value

c)

compound interest

d)


rate of return

17.

The increase in prices over a specific period of time, usually shown as a percentage, is called

a)

inflation

b)

capitalism

c)


rate of return

d)


dividends

18.

What is the present value given the following variables: Future Value (or FV) = $300, Rate of Return (or ROR) = 10%, and Number of Periods (N) = 8 years

a)

$139.95

b)


$193.95

c)


$138.96

d)

$1

19.

What is the present value or PV formula

a)

PV == FV/(1 ++ R)N

b)

y == mx ++ b

c)

yx/y1 == x1/x2

d)

PF == VF/(2 ++ R)

20.

The ___ of principal charged by the lender for loaning money

a)

percentage

b)

interest

c)

value

d)

debt