Calculations
Compound vs. Simple Interest
Bank accounts & Credit cards
Owning a vehicle
Random
100

Pedro has $50 in a savings account. The interest rate is 10% per year and it is not compounded. How much interest will he earn in 2 years?

$10

100

When do we use this formula: Simple or compound interest? 


I = Prt

Simple interest

100

What is a credit report? 

collection of information on how you pay bills, repay loans, and monthly debts

100

What is a variable cost?

Variable costs: costs that change with other factors

100

What are stocks? 

Stocks: ownership of a fraction of a corporation

200

Chloe borrows $800 from a bank. The interest rate at the bank is 4%, compounded annually. To the nearest cent, how much will she owe in 3 years?

$899.89

200

How many weeks in a year?

52

200

What are 3 things to look for on your credit report?

  • Personal identification information 

  • Credit history 

  • Report inquiries 

  • Dispute statements

  • Public records

200
What is an example of a variable cost? 
  • Maintenance

  • Fuel

200

Define: Available credit

  • The remaining amount of money you can still spend to reach your credit limit.

300

This month, Andrea had a previous credit card balance of $45, bought a sweater for $25.50, paid for a dinner out which cost $55.00, bought a book for one of her classes for $62.25, and treated herself to 3 new CD’s which came to $47.62. She had made an early payment of $50. How much would she owe on her due date?

$185.37

300

What does n mean in the compound interest formula?

number of times we compound

300

Name 3 investment alternatives

stocks, mutual funds, real estate, GICs, savings accounts
300

What is a fixed cost? Provide an example

  • Fixed costs: costs that do not change (remain constant)

  • License fee

  • Insurance

300

What is the depreciation of a car? 

Depreciation: car loses its worth over time

400

Tamika invested $1000 in a GIC (Guaranteed Investment Certificate) in her bank. If it is growing 2.3% compounded annually, how much would it be worth in 3 years?

$1070.59

400

What does quarterly mean?

4 times per year (every 3 months)

400

Name 5 fees associated with bank accounts

cost of cheques, monthly statement fees/paper statement fees, early withdrawal penalties, minimum balance fees, overdraft/NSF fees, overdraft protection fees, returned deposit fees, ATM fees, debit card transaction fees

400

List 3 factors affecting insurance rates and explain 1 of them

  • Gender: In Ontario, men paid 27 per cent more than women for car insurance

  • Age: Drivers in the 18-25 age range pay higher average car insurance

  • Driving record: the less tickets you have received, the less you pay for insurance

  • Model of vehicle: High-end luxury cars usually cost more to insure

  • Use of vehicle (i.e. business, personal): the more you use it, the higher your insurance

400

How many compound periods if I am compounding biweekly for 3 years? 

2 times a week x 52 weeks in a year x 3 years = 312 periods!

500

The population of Mathville is 23000. Each year the population increases at a rate of 3.4%. What would the population be after 5 years?

$27, 185.07

500
When graphed, which one of the interests shows an exponential graph? 

Compound interest

500

What is an overdraft/NSF fee? Provide an example

  • fee for when you spend more money than in your account (i.e. when a cheque bounces or you forget about your monthly netflix subscription)

500

List 3 costs associated with owning a car. Explain 1 of them. 

  • Monthly payments: cars cost a lot of money, likely - you won’t be able to pay for it all in one go, you will likely make biweekly payments to pay off your car 

  • Insurance: monthly payments to cover the loss of your vehicle in an accident

  • Depreciation: car loses its worth over time

  • Maintenance: car needs oil changes, tire rotation, winter tire change, wiper blades, engine air filter, brake & brake pads, car wash & fluid top ups

500

What is an overdraft protection fee? 

Overdraft Protection Fees: a fee to protect you from the overdraft fee

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