VOCABULARY
What does "t" represent in the compound interest formula?
The amount of time money is borrowed in YEARS
Drew puts $15 into an account that has a simple interest rate is 8% per year. How much interest will he pay if he if he takes 2 years to repay the loan?
$2.40
What is 99% as a decimal?
0.99
What is net worth?
A measure of WEALTH
What LETTER represents the "account balance"?
A
Mark has $970 in a savings account that pays 3% simple interest. How much interest will he earn in 3 years?
$87.30
What is 3.7% as a decimal?
0.037
What word means "a plan that describes how much money you have and how you will spend it"?
Budget
What word means "the initial amount of money"?
Principal
Calvin charged a $300 on his credit card with a simple interest rate of 23%. How much simple interest will he owe after 8 years?
$552
What is 4.95% as a decimal?
0.0495
What word means "the amount of money that is put into your bank account after income tax is deducted"?
Net income
What does the "r" in compound interest formula represent?
Interest rate as a DECIMAL
Jake deposited $200 into a bank account that is compounded annually at a 4% interest rate. What is his account balance after 2 years?
$216.32
What is 0.053% as a decimal?
0.00053
Terry has a gross income of $56,300 and paid $8,200 in income tax. How much is Terry's net income?
$48,100
Which type of interest grows more SLOWLY?
Simple interest
Libby deposited $900 into a bank account that is compounded annually at a 20% interest rate. What is his account balance after 2 years?
$1296
What is 0.12345 as a decimal?
0.0012345
Olive is calculating her net worth. Her assets have a total of $89,234 and her liabilities have a total of $6,523. What is the value of Olive's net worth?
$82,711