Vocabulary 1
Definition: A percentage, or portion, of money that the bank pays you for having a savings account. Often viewed as a reward.
Interest
Definition: The initial amount of money in an account.
Principal
Annually = ____
1x / year
How much simple interest would $8,500 earn in 5 years at an interest rate of 7.75%? (*Interest only)
I = $3,293.75
I = PRT = $8500 x 0.0775 x 5 = $3,293.75
You invest $3,550 in an account with an interest rate of 3.9% compounded continuously. After 10 years, how much money will be in the account?
https://d138zd1ktt9iqe.cloudfront.net/media/seo_landing_files/continuous-compound-interest-formula-1613465712.png
A = $5,243.28
A = Pe^(rt) = $3,550e^(.039 x 10) = $5,243.28
What does it mean if you are second cousins with someone?
A) Both of you are Siblings that share a grandparent
B) Both of you are Siblings that share a great-grandparent
C) Both of you are Non-Siblings that share a grandparent
D) Both of you are Non-Siblings that share a great-grandparent
D) You two are Non-Siblings that share a great-grandparent
Definition: When an account does not have enough money to cover a check that has been written.
Insufficient Funds
Definition: A numerical password that allows you to access your checking / savings account at the ATM.
Personal Identification Number (PIN)
Quarterly = ____
4x / year
How much money would you have at the end of 5 years if you deposited $8,500 in a bank account that compounded quarterly and had an interest rate of 4.55%?
https://eor7ztmv4pb.exactdn.com/wp-content/uploads/2019/05/continuous-compound-interest-formula.png
A = $10,657.69
A = P(1+r/n)^(nt) = $8,500(1+.0455/4)^(4x5) = $10,657.69
You're going to invest in an account that pays an interest rate of 5.5% compounded annually. How much would you need to deposit initially for the value of the account to reach $49,000 in 8 years?
https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcRs1NNHBS4bO1WtF3kuy3WHXYR0Hh8sspLDmLNvdcd1PLJlHnjh:https://o.quizlet.com/AwEGiU.nwoLW.-fVed3qrQ.png&s
P = $31,928.34
Must use A = P(1+r)^t and get 'P' by itself. Tackle the (1+r)^t first and then divide it to the other side to get 'P' by itself.
Which of these famous musicians has a birthday on July 4th (Independence Day)?
A) Drake
B) Post Malone
C) Kanye West
D) Lil' Wayne
B) Post Malone
Definition: This specific type of account is just like a savings account and, depending on the bank you choose, it can offer you a higher interest rate for greater earnings.
Money Market Account
Definition: a device that dispenses cash or performs other banking services when an account holder inserts a bank card.
Automated Teller Machine (ATM)
Daily = ____
365x / year
You invest $10,250 in an account paying an interest rate of 4.4% compounded continuously. Assuming no deposits or withdrawals are made, how long would it take for the account to reach $14,446.87?
Use the formula t = LN (A / P) รท r.
Round your answer to the nearest tenth of a year, i.e: 10.6 years.
t = 7.8 years
You invest $11,700 in an account paying an interest rate of 3.8% compounded semi-annually. Assuming no deposits or withdrawals are made, how long would it take for the account to reach $29,250? Round your answer to the nearest tenth of a year, i.e: 10.6 years.
Time = 24.3 years
Name any one of the four faces that are carved on Mount Rushmore (You definitely know one for sure):
- George Washington -
- Abraham Lincoln -
- Thomas Jefferson -
- Teddy Roosevelt -
Definition: A certificate that states there's a specific sum of money on deposit and guarantees the payment of a fixed interest rate after a certain period of time.
Certificate of Deposit (CD)
Definition: A monthly fee that some banks charge just to grant you access to your checking / savings account.
Maintenance Fee
Continuously = ____
e
Suppose a bank offered you a savings account with 7.25% interest. You decide to take advantage of the offer and deposit $4,000 into the account. The account is compounded monthly. How much interest would you earn if you left it alone for 4 years? *Interest only*
https://eor7ztmv4pb.exactdn.com/wp-content/uploads/2019/05/continuous-compound-interest-formula.png
Interest Earned = $1,341.05
You have to do A = P(1+r/n)^(nt), then take the difference of the new total amount and the original amount deposited. In other words, $5,341.05 - $4,000.00 = $1,341.05
You're committed to growing your savings account. You decide to deposit $500 over and over again every month for the next 5 years. If your savings account is compounded monthly at an interest rate of 3.4%, find the total amount of your savings account at the end of 5 years.
A = $32,650.58
Use the formula for Future Value of a Periodic Deposit to solve for 'A'
According to Urban Dictionary, what is the term for "A sudden, infuriating freeze in your internet connection during gaming or streaming, turning smooth action into stuttery chaos:"
A) 404ing
B) Lag Spike
C) Buffering
D) Blue Screen of Death
B) Lag Spike
Video Link 1: https://www.youtube.com/shorts/sC5u8h9DOG8
Video Link 2: https://www.youtube.com/shorts/O9fstdnMYx8
Definition: The act of depositing money into your bank account, usually by a business or the bank itself.
Crediting
Definition: The date on which an investment reaches the end of its life, after which it must be renewed or the interest earned gets paid back to the investor.
Maturity
Compounded seconds = ____
31,536,000x / year
How much money do you need to initially deposit one time in order to have $60,000 in your account, if you let your money grow at 4.75% interest compounded semi-annually for 3 years?
P = $52,118
Use P = A / [(1+r/n)^(nt)] and plug the values into the formula.
How much money do you need to periodically deposit on a monthly basis in order to have $105,000 in your account, if you let your money grow at 6.25% interest compounded monthly for 5 years?
P = $1,495.30
Use P = (A x r/n) / [(1+r/n)^(nt) - 1] and plug the values into the formula.
There's a lot of interesting names floating around in College Football these days. Which THREE of the following players' names are 100% legitimate?
A) Dude Person
B) Djouvensky Low-Kee
C) Rocky Bottom
D) Legend Journey
E) Da'Realyst Clark
F) Squirrel Brown
A - D - E: Dude Person (Univ. of Central Arkansas), Legend Journey (Univ. of California) and Da'Realyst Clark (Kent State)
Source: https://1075thefan.com/playlist/funniest-college-football-player-names-of-2025/item/18
The other legitimate names on this list are Djouvensky Schlenbaker, Rocky Beers, & Squirrel White.