Non-Numerical Answers
Part A: What is the maximum amount of money the FDIC insures per depositor, per insured bank, for each account ownership category?
Part B: What does FDIC stand for?
A: $250k
B: Federal Deposit Insurance Corporation (FDIC)
Paola decides to make a deposit, but it’s not just any deposit. She’s carrying $100 in crisp bills, $15.25 in a chaotic pile of coins (some sticky, some suspiciously old), and a check for $250.50 she found in her backpack behind a granola bar. After nearly dropping everything into the ATM and chasing coins across the floor, how much money did Paola actually deposit?
What is $365.75?
If Hunter deposits $1700 at 3 percent interest for 3 years, how much simple interest will she earn?
$153
Jasmyn is so smart, she decides to invest $3,200 into a savings account earning 2% interest compounded semiannually—because even her money deserves to glow up. After 1 year, how much compound interest has her cash earned?
$64.32
Calvin, who has dreams of being the next Daymond John, decides to bench his money instead of weights. He deposits $5,750 into a savings account paying 2.75% interest compounded quarterly. How much compound interest will he earn after 3 years and 6 months?
$578.86.
The official banking document you complete to itemize cash, coin, and negotiable instruments when making a deposit, which also serves as a record for both the depositor and the bank.
What is a deposit slip?
After realizing her piggy bank weighed more than her dog, Lilly decided it was time to cash in her treasure chest of loose change. Armed with 40 nickels, 25 quarters (the VIPs of vending machines), and 100 pennies (a.k.a. "copper regrets"), she marches to the bank like a financially confused pirate. She also brings along a crisp $50 bill from her paycheck, which is so fresh it probably still has a faint scent of adult responsibility. How much will Lilly deposit after unloading her loot?
$59.25
If Jason deposits $650 at 2.75 percent interest for 5 years, how much simple interest will he earn?
$89.38
If Jaxon deposits $1000 at 3.5 percent interest compounded quarterly, how much compound interest does he earn after 2 quarters?
$17.58
Marcel invests $4,200 into a savings account at an annual rate of 6 percent compounded daily. She makes no other deposits or withdrawals. At the end of 2 years, what is her total balance and how much of it is compound interest?
$535.50
What is the difference between simple interest and compound interest, and why does compounding more frequently increase the total earned?
Simple interest does not accumulate on previously earned interest. Compound interest earns interest on interest, so it grows faster over time.
Dylon deposits a single twenty-dollar bill, 3 $1 bills, and 4 coins that each have Thomas Jefferson’s face on them. He also adds a check from his employer for $382.45. What is his total deposit?
$405.65
Pink Hat, the self-proclaimed “human calculator,” decided to back up his reputation by investing $824 at 1.05% interest for 18 months. This is extra impressive because he’s not just calculating numbers in his head—he’s letting his money do some math too. How much money will he have at the end (principal + interest)?
~$836.97
If Gina deposits $1840 at 6 percent interest compounded monthly, how much compound interest does she earn after 3 months?
$27.62
Jaidyn really wants a car—but not just any car. He wants a neon green convertible covered in fake cat stickers. He deposits $3,000 into an account paying 4% interest compounded weekly, hoping that in 1 year the bank’s magic will help him afford this masterpiece of questionable taste. How much money will Keagan’s obsession with cats earn him in compound interest, and is it enough to buy a single sticker, let alone the whole car?
$122.22
What official banking document must a depositor complete to authorize the bank to withdraw specific funds from a savings account in person, often including details of the account, date, and amount, and serving as proof of the withdrawal for both parties?
What is a withdrawal slip?
Akil empties his backpack and finds a wrinkled ten-dollar bill, 6 quarters, 11 pennies, 3 nickels, and a check from his cousin for $127.89. What is his total deposit?
$139.65
Ashley -- who is sick of hearing that she looks like her little sister (or rather, the other way around) -- decides to prove she’s the grown-up and responsible one by depositing $500 at 2% annual interest for 20 days. How much money will she have at the end (principal + interest)?
$500.55
Amariah deposits $1,200 into a savings account that earns 3 percent annual interest compounded quarterly. She makes no other deposits or withdrawals. How much compound interest does she earn after 2 years?
$73.20
Devin inherited $67 from his great-aunt who loved socks more than humans. He decides to deposit it into a bank account that earns 7% annual interest compounded monthly because he’s hoping the money will eventually buy him all 67 pairs of neon socks in the world. How much money will he have after 2 years, and how much of that is interest?
Total = $76.78, Interest = $9.78
If a savings account earns 1% annual interest but inflation runs at 3%, what happens to the real purchasing power of the money, and why is this important for savers?
The real purchasing power of the money decreases because the prices of goods and services are rising faster than the account is earning interest, so even though the balance grows slightly, the money can buy less than before.
Chandler cleans out his car and decides to deposit any money he finds in his savings account. He finds 2 quarters, 7 pennies, 8 nickels, a dime, a bill with a picture of Abraham Lincoln on it, and a check from his grandmother for $15 with a note on it in the memo line reminding him to "not spend it all at one place." How much money did he add to his savings account?
$21.07
Adam, who is absolutely obsessed with 6-7 (he says it at least 6 to 7 times a day), decides to put $67.67 into a simple interest account at 6.7% interest for 6.7 years—because why not make everything about 6-7? How much simple interest will he earn?
$30.38
Jesus starts a savings account with $2,500 at an annual rate of 2.4 percent compounded monthly. After 18 months, what is the total amount in his account, and how much of that is compound interest?
$91.25
Abigail wants to buy 67 banana smoothies for her friends as a special treat to celebrate Elvis' birthday. She starts with $100 in a savings account earning 4% interest compounded quarterly. She leaves it alone for 3 years. How much money will she have, and can she finally get all 67 smoothies without begging the cafeteria?
Total = $112.68, Interest = $12.68