WorksheetsFinancial Literacy Midterm Review
Total questions: 27
Worksheet time: 14mins
How many biweekly pay periods are there in a year?
12
24
26
52
Which of the following is NOT a purpose of a checking account?
Depositing money
Writing checks
Investing in stocks
Using debit cards
If you work 20 hours at $5.50 per hour, what is your hourly pay total?
$100
$110
$120
$105
What is the difference between simple interest and compound interest?
Simple interest is earned on the principal and previously earned interest, while compound interest is earned only on the principal.
Simple interest is earned only on the principal, while compound interest is earned on the principal and previously earned interest.
Simple interest is earned on the total amount, while compound interest is earned only on the principal.
Simple interest and compound interest are the same.
What does "gross pay" refer to?
The amount earned after deductions.
The total earned before deductions.
The amount saved in a savings account.
The amount of interest earned on savings.
Why are savings accounts considered low risk?
Because they offer high returns.
Because they are not insured.
Because money is insured and stable.
Because they are not affected by inflation.
How much is the total cash amount if you have 5 twenties, 3 tens, and 8 fives?
$150
$170
$140
$180
What is the total value of 10 quarters?
$2.50
$1.00
$5.00
$0.50
How much is the total value of 14 dimes?
$1.40
$0.14
$2.00
$1.00
What is the total amount of coins when you add 10 quarters, 14 dimes, 9 nickels, and 7 pennies?
$4.42
$5.00
$3.50
$4.00
What is the total amount when you add $651.45, $186, and $4.42?
$841.87
$800.00
$900.00
$700.00
What is the formula for compound interest loan repayment?
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
Percentage
Payment
Using the compound interest formula A=P(1+r)t , if P = 1240, r = 0.08, and t = 2, what is the value of A?
$1449.66
$1500.00
$1300.00
$1400.00
If the regular wage is $36, what is the overtime wage calculated at 1.5 times the regular wage?
$36
$54
$72
$48
What is the total gross pay if an employee works 36 regular hours and 12 overtime hours, with a regular wage of $36 and an overtime wage of $54?
$1,944
$1,500
$2,000
$1,800
What is the primary purpose of a budget?
To create a plan for income and expenses to manage money responsibly.
To increase income through investments.
To reduce taxes owed to the government.
To eliminate all expenses.
How many hours must an employee work to qualify for overtime in most workplaces?
36 hours
40 hours
45 hours
50 hours
What is 22% of $3,499?
$769.78
$700.00
$800.50
$750.25
According to the 50/30/20 rule, how much should be allocated for "wants" if the total income is $600?
$120
$180
$200
$150
What is the primary purpose of the 20% savings portion in the 50/30/20 rule?
To pay for entertainment expenses
To build savings, emergency funds, and investments for the future
To cover daily living expenses
To pay off debts only
What is the simple interest on $500 at a 3% annual interest rate for 4 years?
$50
$60
$45
$75
If a salesperson earns a 2.5% commission on sales over $3,000, how much commission will they earn on $7,500 in sales?
$100
$112.50
$125
$150
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 is the type of fee charged for making too many savings withdrawals?
Overdraft fee
Excess withdrawal fee
Late payment fee
Maintenance fee
In the formula A=P(1+r)t , what does A represent?
Principal amount
Interest rate
Total amount after interest
Time period
