WorksheetsMath in Personal Finance Review
Total questions: 30
Worksheet time: 16mins
Which of the following is the first step of the financial planning process?
Developing financial goals
Creating an action plan
Determining the current financial situation
Evaluating alternatives
Which of the following is NOT involved in developing financial goals?
Identifying feelings about money
Preparing a list of current asset and debt balances
Developing short-term and long-term goals
Differentiating needs from wants
Cindy decided to save a larger amount each month. Which of the following describes this action?
Taking new course of action
Changing the current situation
Continuing the same course of action
Expanding the current situation
Which of the following steps of the financial planning process involves considering the consequences of choice?
Identifying alternative courses of action
Developing financial goals
Revising the plan
Evaluating alternatives
Which of the following is NOT a part of reviewing and revising the financial plan?
Regularly assessing the financial decisions
Developing an action plan which identifies ways to achieve the goals
Taking a complete review of finances at least once a year
Making priority adjustments which will bring financial goals in line with current life situation
Which of the following is another name for the time value of money?
Asset
Loan
Interest
Debt
Which of the following is NOT one of the amounts which determines the time value of money?
The amount of saving
The amount of loan
The amount of time
The rate of interest
Which of the following describes interest computed on the principle, excluding previously earned interest?
Future value
Present value
Compounding
Simple interest
Which of the following describes interest generated on previously earned interest?
Present value
Future value
Simple interest
Compounding
Which of the following is the most basic method of calculating the time value of money?
Financial calculator
Formula calculation
Spreadsheet software
Time value of money websites
How much interest would an individual earn if they deposited $300 at six percent for two years?
$40
$32
$36
$42
How much interest would an individual pay to borrow $700 for nine months at ten percent?
$47.50
$52.50
$55.25
$57.25
What is the future value of $900 at seven percent after five years?
$1,018.10
$1,167.40
$1,349.60
$1,262.30
What is the future value of an annual deposit of $800 earning six percent for 15 years?
$1,862.08
$18,620.78
$67,620.80
$6,762.08
What amount would an individual have in a retirement account if they made annual deposits of $425 for 25 years earning 12 percent, compounded annually?
$49,998.75
$56,665.25
$60,889.75
$65,772.25
What is the present value of $3,500 earning 15 percent for eight years?
$1,144.50
$1,157.25
$1,189.75
$1,235.50
Place the following math solution steps in the correct order.
A - Check the Answer
B - Develop an equation from the problem
C - Define and understand the problem
D - Solve the equation to answer the problem
E - Identify the information needed to solve the problem
(a)
Financial assets only include the money in an individual’s bank account.
True
False
Which of the following choices are types of financial liabilities?
Unpaid bills
Student loan debt
Credit card debt
All of the answer choices are correct
Which of the following is the equation for net worth?
Financial assets plus financial liabilities
Financial assets minus financial liabilities
Financial assets times financial liabilities
Financial assets divided by financial liabilities
Which of the following is the percentage of income to be used for housing?
Four to seven percent
20 to 30 percent
15 to 20 percent
40 to 50 percent
Which of the following is NOT a family necessity?
Toiletries
Sporting goods
Laundry
Groceries
Personal financial tools help individuals effectively manage their personal finances.
True
False
Which of the following is NOT an amount needed to determine the time value of money for savings in the form of interest earned?
The amount of savings, or principal
The amount of financial assets
The rate of interest
The amount of time
Which of the following are uses of compounding interest?
Interest computed on principles, excluding previously earned interest
Interest generated on previously earned interest
Amount which a current savings will decrease based on a certain interest rate and a certain time period
None of the answer choices are correct
Future value can only compound once in a calendar year.
True
False
Why might someone open a savings account?
To get a loan
To keep their money safe and earn interest
To spend more money
To avoid making a budget
What does it mean to save money?
To spend money on gadgets
To keep money aside for future use
To donate money
To borrow money
Which strategy can help you save money?
Spending all your money at once
Ignoring your budget
Setting aside a portion of your income regularly
Borrowing money frequently
