WorksheetsFinancial Literacy Midterm Review
Total questions: 24
Worksheet time: 12mins
How many biweekly pay periods are there in a year?
12
24
26
52
If someone works 20 hours at $5.50 per hour, what is their hourly pay?
$110
$100
$120
$105
What is 25% of $860 in tips?
$215
$200
$220
$210
What is the total gross pay if someone earns $110 in hourly pay and $215 in tips?
$325
$315
$330
$320
What is the definition of simple interest?
Interest earned only on the principal (original money).
Interest earned on principal and previously earned interest.
Interest earned on deductions.
Interest earned on gross pay.
What is the difference between gross pay and net pay?
Gross pay is the total earned before deductions, while net pay is the amount received after deductions.
Gross pay is the amount received after deductions, while net pay is the total earned before deductions.
Gross pay and net pay are the same.
Gross pay is the amount earned after taxes, while net pay is the amount earned before taxes.
Why are savings accounts considered low risk?
Because money is insured and stable.
Because they earn high interest rates.
Because they are not affected by inflation.
Because they are only accessible after retirement.
What is the definition of compound interest?
Interest earned on principal and previously earned interest.
Interest earned only on the principal (original money).
Interest earned on deductions.
Interest earned on gross pay.
What is the formula for compound interest loan repayment as mentioned in the study guide?
A=P(1+r)t
A = P + r + t
A=P(1−r)t
A = P(1 + r*t)
In the formula I = PRT, what does "P" represent?
Principal, the original amount of money
Profit, the earned amount
Percentage, the rate of interest
Payment, the total amount paid
Which of the following is NOT a mandatory paycheck deduction?
Federal tax
State tax
Social Security
Health insurance
What is the overtime wage if the regular wage is $36?
$36
$54
$72
$48
How much is the total gross pay for an employee who works 36 regular hours and 12 overtime hours, with a regular wage of $36?
$1,944
$1,296
$2,000
$1,648
Which of the following is an example of a mandatory paycheck deduction?
Union dues
Medicare
Health insurance
Retirement contributions
What is the formula used to calculate the total repayment amount in the example provided?
A = 1240(1.08)2
A = 1240(1.1664)
A = 1240(1.08)3
A = 1240(1.05)2
What is the purpose of FDIC insurance?
To insure bank deposits up to $500,000 per depositor
To insure bank deposits up to $250,000 per depositor
To insure bank deposits up to $100,000 per depositor
To insure bank deposits up to $1,000,000 per depositor
What is 22% of $3,499?
$769.78
$700.00
$800.00
$750.00
What is the primary purpose of the 20% savings portion in the 50/30/20 rule?
To pay for entertainment expenses
To cover monthly bills
To build savings, emergency funds, and investments for the future
To purchase luxury items
What is the simple interest earned on $500 at a rate of 3% for 4 years?
$45
$60
$75
$50
Which of the following is NOT a deduction category typically found on a pay stub?
Federal tax
State tax
Social Security
Entertainment tax
What is an example of a predictable, same-amount expense?
Rent
Groceries
Entertainment
Medical bills
What type of fee is charged for too many savings withdrawals?
Late payment fee
Excess withdrawal fee
Overdraft fee
Maintenance fee
What is the simple interest on $210 at 8% for 7 years?
$117.60
$120.00
$105.00
$140.00
In the formula A=P(1+r)t , what does A represent?
Principal amount
Total amount after interest
Rate of interest
Time period
