Show:
Can you tell time?
R you good with r?
That's interest-ing
True or False
100

Calculate t:

1 year, compounded monthly

1 x 12 = 12

100

Calculate r (show the fraction only):

7%, compounded monthly

 r=.07/12 

100

How much did you pay in interest if your payments on a $800 loan totaled $1300?

$1300 - $800 = $500

100

True or False?

In a home loan, every payment, the loan ending balance increases?

False.  Making payments DECREASES the loan ending balance.

200

Calculate t:

10 years, compounded daily

10 x 365 = 3650

200

Calculate r (show the fraction only):

3.6%, compounded daily

 r=.036/365 

200

How much interest was made if the initial balance was $4000 and the ending balance was $12000?

$12000 - $4000 = $8000

200

True or False?

If everything else is the same, a bank that compounds interest more frequently will result in a greater ending balance.

True.  

300

Calculate t:

5 years, compounded monthly

5 x 12 = 60

300

Calculate (1 + r):

8.4%, compounded monthly

(1 + r) = (1 +  .084/12 ) = 1.007

300

After 20 years, your $40,000 has grown to $105,000. How much have you made in interest?

$105,000 - $40,000 = $65,000

300

True or False?

On a home mortgage, you pay the same amount of interest every month.

False.  Every month you make the same payment, but the amount that goes toward interest and principle is different.

400

Calculate t:

35 years, compounded monthly

35 x 12 = 420

400

Calculate (1 + r):

7.3%, compounded daily

(1 + r) = (1 +  .073/365 ) = 1.0002

400

You deferred your $27,000 student loan for 3 years and accrued $6,500 in interest.  What is the balance of your loan now?

$27,000 + $6,500 = $33,500

400

True or False?

You do need to check your credit card statements for fraud.

True.  Always read your statement and make sure all charges are yours.

500

Calculate t:

23 years, compounded daily

23 x 365 = 8,395

500

Calculate (1 + r):

.48%, compounded monthly

(1 + r) = (1 +  .0048/12 ) = 1.0004

500

You have $50,000 to invest in a retirement fund.  In 20 years, you want to have about $110,000.  How much interest does your investment need to earn to reach your goal?

$110,000 - $50,000 = $60,000

500

True or False.

Savings is optional, and not really necessary.  Planning is for fools.

False.