Lesson 3-1
What is the simple interest formula?
i=prt
What is the formula for the Rule of 72?
72/(r*100)
What is the formula for the maximum amount of money a deposit can create?
S=a/r
The Federal Reserve System consists of how many Federal Reserve Banks?
12
State how many times each is compounded a year.
Annually
Semiannually
Quarterly
Monthly
Annually: 1
Semiannually: 2
Quarterly: 4
Monthly: 12
Tim can save $85 per week from his paycheck. After saving for a year, he decides to buy a one-year CD that pays 4% simple interest. How much will Tim save in 52 weeks?
$4,420
What is the formula for compound interest?
B = p(1+r)^n
What is the formula for the maximum multiplier effect?
("original amount"+"S")/"original amount"=M
What offers a fast and reasonably accurate way to determine how long it will take for a sum of money to double when it is compounded over several years?
Rule of 72
Substitute and solve to find the value of the remaining variable.
p=80 and l=15
p=2l+2w
w=25
Tim can save $85 per week from his paycheck. After saving for a year, he decides to buy a one-year CD that pays 4% simple interest. How much interest will the CD earn in 1 year? Also find, How much will Maria's CD be worth after 1 year.
$176.80 interest
$4,596.80
Hudson has a certificate of deposit in the amount of $10,000. It is held by a bank that pays 5% interest, compounded semiannually. How much will Hudson have in this account after 2 years?
$11,038.13
Sam wants to find out the multiplier effect on an initial deposit of $1,000 through five levels. What is the total amount of extra money or credit created through 5 levels of the multiplier effect?
$2,689.28
What is money paid to you by a financial institution for the privilege of using your money to make investments and loans to others?
interest
For the series, state the if there is a common ratio. If there is, give the ratio.
1+2+4+8+16
"Yes", 2
Alex wants to buy a golf bag. She finds one on sale for $59.84. The sale price will be in effect for 1 month. If Alex can save $22 per week, will she have enough money to buy the bag before the sale is over? Find how many weeks it will take Alex to save for the golf bag.
Yes. It will take 2.72 weeks to save for the bag.
How much will a $10,000 CD at 5% interest, compounded semiannually, be worth in 5 years?
$12,800.85
$4,000
What is the amount of money invested called?
Principal
Simplify
3y^4*5y^4
15y^8
Sophia would like to buy one or more of the items listed below. She can save $25 each week from her salary.
Sweatshirt: $59.87
Headphones: $89.99
Jacket: $109.99
Heated Blanket: $139.99
How many weeks will Sophia have to save for each item?
Sweatshirt: 3 weeks
Headphones: 4 weeks
Jacket: 5 weeks
Heated Blanket: 6 weeks
Tanner invests $10,000 in a CD that pays 6% compounded quarterly. How long will it take his investment to double?
12 years
Brady wants to find out the maximum multiplier effect on an initial deposit of $1,000. What is the multiplier?
5
What is a general increase in prices called?
Inflation
What Federal Reserve District are we in?
District 9