Financial Literacy - APR and Stuff

Percent → Decimal

100

What is 25% as a decimal?
A. 2.5
B. 0.25
C. 0.025
D. 25

B. 0.25

200

2. What is 12% as a decimal?
A. 0.012
B. 1.2
C. 0.12
D. 12

C. 0.12

300

3. What is 8.5% as a decimal?
A. 0.85
B. 8.5
C. 0.0085
D. 0.085

D. 0.085

400

4. What is 0.5% as a decimal?
A. 0.005
B. 0.05
C. 0.5
D. 5

A. 0.005

500

5. What is 150% as a decimal?
A. 0.15
B. 15
C. 150
D. 1.5

D. 1.5

Finding Periodic Rate

100

6. APR = 12%, monthly. What is the periodic rate?
A. 0.12
B. 0.01
C. 0.001
D. 1.2

B. 0.01

200

7. APR = 24%, monthly. What is the periodic rate?
A. 0.02
B. 0.24
C. 0.002
D. 2.4

A. 0.02

300

8. APR = 18%, monthly. What is the periodic rate?
A. 0.18
B. 0.0015
C. 0.015
D. 0.15

C. 0.015

400

9. APR = 36%, monthly. What is the periodic rate?
A. 0.036
B. 0.0036
C. 0.36
D. 0.03

D. 0.03

500

10. APR = 9%, monthly. What is the periodic rate?
A. 0.009
B. 0.75
C. 0.0075
D. 0.075

C. 0.0075

Finance Charge

100

11. Balance = $500, rate = 0.02
Finance charge = ?
A. $25
B. $5
C. $10
D. $50

C. $10

200

12. Balance = $1,000, rate = 0.015
Finance charge = ?
A. $1.50
B. $15
C. $150
D. $0.15

B. $15

300

13. Balance = $800, rate = 0.01
Finance charge = ?
A. $80
B. $0.80
C. $8
D. $18

C. $8

400

14. Balance = $600, rate = 0.02
Finance charge = ?
A. $12
B. $120
C. $1.20
D. $6

A. $12

500

15. Balance = $1,200, rate = 0.015
Finance charge = ?
A. $18
B. $1.80
C. $180
D. $12

A. $18

Real-Life Credit Card Situations

100

21. You buy snacks for $10 using your credit card. What happens if you don’t pay it off right away?
A. Nothing happens
B. You get free snacks
C. You will be charged interest later
D. The store calls you

C. You will be charged interest later

200

22. Which of these will MOST likely increase how much interest you pay?
A. Paying your full balance
B. Making a larger payment
C. Paying late or very little
D. Not using your card

C. Paying late or very little

300

23. Why is it important to pay more than the minimum payment on a credit card?
A. So you can spend more
B. So you pay less interest over time
C. So your card stops working
D. So you avoid taxes

B. So you pay less interest over time

400

24. If your APR is high, what does that mean?
A. You pay less interest
B. You don’t owe money
C. You pay more interest over time
D. You get rewards faster

C. You pay more interest over time

500

25. You have a $1,000 balance and only pay the minimum each month. What will likely happen?
A. The balance disappears quickly
B. You will pay more interest and take longer to pay it off
C. You won’t be charged interest
D. Your balance goes to $0 immediately

B. You will pay more interest and take longer to pay it off