Financial Math Worksheet printable pdf download

Financial Math Worksheet

Worksheet

Fall 2006

Module 7 (Financial Math)

Math 18

Name_____________________________

Directions: You will work individually on this worksheet. Use each other or me for

reference as needed. Each student should place all work on his or her sheet and when

completed the sheet should be placed in your binder.

Encouraging Quote: “D’Oh!”---Homer Simpson

MODULE 7: Financial Math

Try out the following problems.

1. Mr. Jones and Mrs. Smith each receive equal rebates from the government. Mr. Jones

decided to put his money in a 3 year CD that earns 3.5% compounded daily. Mrs.

Smith decided to put her money in a 3 year CD that earns 3.6% compounded

quarterly. Which one is a better deal? Why?

2. The day she turned 20, Debby White deposited a lump sum into a savings account

where it earned 8% compounded quarterly.

a. She is now 60 years old and there is $360,000 in the account. How much money did

she deposit 40 years ago?

b. How much interest did Debby’s account earn?

c. At 60 Debby wants to live off of the quarterly interest alone. If she does this, then

how much spending cash will she have each quarter?

Financial Math Worksheet