Personal Finance : Module 2

A financial institution will check a person's background and other information because they want to make sure that _____________________________.

that person will be a responsible bank account customer

1. Calculate the interest for $300.00 at 5% for 2 years.

30

2. Calculate the interest for $2,000.00 at 3% for 5 years.

300

3. Calculate the interest for $5,000.00 at 1.5% for 6 months.

37.50

5. Calculate the interest for $5,000.00 at 4% for 3 months.

50

Find the total interest earned if you invest $5,000.00 at a 2% interest rate for 5 years to be compounded annually (once a year).

520.40

4. Calculate the interest for $10,000.00 at 2% for 3 years.

600

What are some typical ways you can make withdrawals from a bank account?

Use paper checks to pay for purchases or bills. Use a debit card connected to your account to make purchases. Withdraw cash at your local branch bank office.

The first thing you need to do to open a bank account is to go through a process called ___________________.

account verification

A check linked to your banking account typically has what parts of information or features?

blanks for payment information financial institution name and number routing/transit number account number account holder's information check number

A is a piece of paper with blanks that is filled out when an account holder wants to deposit either checks or cash into his/her account.

deposit slip

When you want to know the interest income you will receive on an investment, you can calculate the simple interest by using the formula, i = prt, where i is the , p is the , r is the and t is the . The rate is always expressed as a and the time is always expressed in .

interest you earn principle interest rate time decimal fraction years

Choose all things the banking institution may require or review when setting up your account.

legal ability to open an account your credit history a photo identification Social Security number

To keep your account active, you will need to _______________.

make deposits

A checkbook is a page or booklet that has for making entries similar to a ledger. As you write checks or make withdrawals and deposits , you can keep up with transactions that affect your account balance.

register rows and columns checks withdrawals and deposits