Vocabulary
Give an example of a variable expense
Groceries, clothing, etc.
What is 5.6% of $476?
$26.66
How much simple interest is earned on $500 at 3% for 8 years?
$120
This type of account is typically where your paycheck will be direct deposited.
Checking account
Which type of loan do you pay the same amount each month, even though the interest and principal portions are changing?
Amortized
What percent is $780 out of $3265?
23.89%
A loan costs $504 in simple interest after 7 years at 8%. What was the principal?
$900
This type of account offers pretty good interest rates in exchange for you not withdrawing the money for an agreed upon amount of time
CD
Anthony wants to track and manage his spending and saving. What should he create?
A budget
A stock pays a quarterly dividend of $0.72, and the current share price is $83. What is the dividend yield?
3.47%
A savings account that starts with $1100 earns 4.2% interest, compounded monthly. How much will it be worth in 50 years?
$8949.91
Name a retirement account you would set up through your employer
403(b)
401(k)
What is a spending deficit, and what can it lead to.
Your income is less that your expenses, so you spend more than you make.
Eventually you will run out of savings and go into debt.
Your employer matches 401(k) contributions up to 6%. If you make a $85,000 salary, what is the maximum they will put in per month?
$425
A bank advertises that its savings account will double in value every 24 years. What interest rate are they using?
3%
When do you pay income taxes with the money in a Roth IRA?
Now
What is spreading out your risk by investing in lots of different stocks and bonds called?
Diversification
A card has a balance of $3,250 and has an APR of 21%. How much interest is paid yearly?
$682.50
Danna put $3000 into an account, and after 18 years, it was worth $12,000. What interest rate was the bank using?
8%
When do you pay capital gains taxes in a 403(b)?
Never!