Checking Accounts
Simple Interest
Compound Interest
Future Value
Present Value
100
Deposits need to be _____ to your balance.
What is added?
100
This is the formula for simple interest.
What is I = prt
100
This is the formula for compound interest
What is 1 + R /N = yx (NxT) = xP=
100
This is the formula for finding future value.
What is 1 + R /N = yx (NxT) = -1 = xP = /(R/N)=
100
This is the formula for finding the present value of a single deposit.
What is 1 + R / N = yx (NxT) B/#1
200
Maintenance fees need to be _____ to your balance.
What is subtracted?
200
Gary deposits $3,700 in an account that pays 2.15% simple interest. He keeps the money in the account for three years, but doesn’t make any deposits or withdrawals. How much interest will he receive after the three years?
What is 238.65
200
This is the formula for finding compound interest.
What is R x T = 2nd LN x P
200
This is how you know to use the future value formula.
What is when money is being deposited into an account every week, year, month... and the interest is compounded.
200
This is the formula for present value of a periodic deposit
What is B x (R/N) 1 + R / N = yx (NxT) = -1 #1/#2
300
These two things need to match for your account to be reconciled.
What are the revised statement balance and the check register balance?
300
How much principal would you have to deposit to earn $700 simple interest in 2 years at a rate of 4%?
What is 8750
300
Jeff deposits $2,300 at 3.13% interest compounded weekly. What will be his ending balance after one year?
What is 2373.11
300
Liam was born on October 1, 2009. His grandparents put $20,000 into an account that yielded 3% interest compounded quarterly. When Liam turns 18, his grandparents will give him the money for a college education. How much will Liam get on his 18th birthday?
What is 34251.05
300
This is how you know to use the present value formula for single deposit and periodic deposit.
What is when you are finding how much money to deposit one or multiple times to get to a certain amount.
400
To find the revised statement balance you
What is take the ending balance from statement + outstanding deposits - outstanding checks?
400
How long will it take $5,000 to double in an account that pays 5.6% simple interest? Round to the nearest year.
What is 18 years
400
Find the balance on a $14,000 balance for 9 months at 3% interest compounded continuously.
What is 18339.50
400
On December 31, Juan Carlos made a $7,000 deposit in an account that pays 2.975% interest compounded semi-annually. How much will be in that account at the end of two years.
What is 7425.89
400
When his daughter Alisa was born, Mike began saving for her wedding. He wanted to have saved about $30,000 by the end of 20 years. How much should Mike deposit into an account that yields 3% interest compounded annually in order to have that amount?
What is 16,610.27
500
Dean has a checking account at City Center Bank. During the month of April he made deposits totaling 2458.52 and wrote checks totaling 789.23. He paid a maintenance fee of 25 and earned 3.24 in interest. His balance at the end of the month was 4492.76. What was his balance at the beginning of April?
What is 2845.23
500
Jesse estimates that it will cost $300,000 to send his newborn son to a private college in 18 years. He currently has $65,000 to deposit in an account. What simple interest rate would he need so that $65,000 grows by $300,000 in 18 years? Round to the nearest percent.
What is 25.6%
500
Mr. Weinstein has a savings account with a balance of $19,211.34. It pays 4% interest compounded daily. hat is his ending balance after three years, if no other deposits or withdrawals are made? How much interest does he earn over the three years?
What is 21660.58 and 2449.24
500
Colleen is 15 years from retiring. She opens an account at the Savings Bank. She plans to deposit $10,000 each year into the account, which pays 2.7% interest, compounded annually. a. How much will be in the account in 15 years? b. How much interest would be earned?
What is 181,952.33 and 31952.33
500
Kate wants to install an inground pool in five years. She estimates the cost will be $50,000. How much should she deposit monthly into an account that pays 3% interest compounded monthly in order to have enough money to pay for the pool in 5 years?
What is 773.43
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