Name: ___________________________________________ Date: 2 ...



Name: ___________________________________________ Date: 2/13/14 Period: ____________

Financial Math Review

Class work Assignment

|Simple Interest |Compound Interest |Continuous Interest |Future Value – periodic |Present Value – one time |Present Value - periodic |

|[pic] |[pic] |[pic] |[pic] |[pic] |[pic] |

|Key Words: |Key Words: |Key Words: |Key Words: |Key Words: |Key Words: |

|Simple interest |Compounded |Compounded |Total balance |Deposit now |Deposit now |

| |Annually, semiannually, |continuously |Each/every |Starting principal |Starting principal |

| |quarterly, etc. | | |goal |Each/every |

| | | | | |goal |

Directions: For each of the questions below, circle the formula you think you are supposed to use, and write down the key words that give you that hint. Then solve using the correct formula from above. READ EACH QUESTION CAREFULLY!!!

1.) Mike wants to have enough money for a motorcycle by the time he graduates college in 4 years. How much of his high school graduation money must be put into a savings account right now, that earns 4.7% interest compounded quarterly, in order to reach that goal?

Formula: ______________________________ Key Words: _______________________________

2a.) Karen puts $1,000 into an account that earns 6.6% simple interest. How much interest will she have earned at the end of 5 years?

Formula: ______________________________ Key Words: _______________________________

2b.) What will be the total amount in her account?

3a.) Tyrell puts $1,500 away at the beginning of High School into a savings account that earns 3.6% interest compounded monthly. How much will he have after 4 years when he graduates?

Formula: ______________________________ Key Words: _______________________________

3b.) How much money did he earn in interest?

4.) Farrah wants to have $6,000 to put down on a car at the end of 3 years. How much money must she put in each month, into an account that pays 6.2% interest compounded monthly in order to reach that goal?

Formula: ______________________________ Key Words: _______________________________

5a.) Sarah has $3,600 to put away. She find a bank that will pay her 4.2% interest compounded continuously. How much will she have in her account at the end of 10 years?

Formula: ______________________________ Key Words: _______________________________

5b.) How much money did she earn in interest?

6.) Selina wants her $500 to gain another $200 in simple interest over the next 5 years. For this to happen, what interest rate would Selina need to get from her bank?

Formula: ______________________________ Key Words: _______________________________

7a.) Unique puts $200 into a savings account every month that earns 3.2% interest compounded monthly. How much will be in her account at the end of 6 years?

Formula: ______________________________ Key Words: _______________________________

7b.) How much of that money did Unique contribute?

7c.) How much of that money is interest?

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