Unit 8 Assessment

Name ____________________
Date __________

1. Explain the difference between simple and compound interest.

Compound interest is calculated each period on the original principle and all interest
accumulated during past periods.

2. Find the total amount of interest that is paid after 6 years on a principal of $32000 at a
simple interest rate of 6%.
$11,520

3. How long does it take a principal of $20000 at a simple interest rate of 5% to become
$27000?
7 years

4. $47,500 is deposited into a savings account. After one year and six months, it totals
$51,377.50. Calculate the simple interest rate for this account.
7.5%

5. You invest $1000 at 4.5% interest compounded monthly for 2 years. What would be the
total value of your investment at the end of 2 years?
$1,093.99

6. You borrow $10,500 for 4 years at 12.7% and the interest is compounded semi-annually.
What is the total value you will have paid back at the end of 4 years?
$17,182.61

Annual Premiums per $1,000

Health Care Benefits Schedule

Network

Annual
Deductible
Hospital
Charges
Home
Health
Care
Coinsurance/
CoPayment

Single
Family

$ 300
$ 900
90%**

Non-Network*

$ 600
$ 1,800
70%**

of Life Insurance: 5-Year Term*

Age

First 50 visits
Over 50 visits
Physician visit
Specialist visit
Physical Therapy
First15 visits
Over 15visits
Emergency Room
Ambulance

100%**
80%**

80%**
80%**

Male

18-30

Female

$ 2.47

$ 2.13

35

2.70

2.29

$ 10
$ 20

$ 12
$ 25

40

3.27

2.67

45

4.17

3.54

$ 15
80%**
$ 50
$ 25

70%**
70%**
$ 50
$ 25

50

5.84

4.82

55

8.81

6.60

60

13.22

9.71

* Minimum Amount is $50,000

* Non-Network refers to a health care provider that doesnt have a
contract with the health plan administrator
** Percent of total cost that is covered by the health care company

For questions 7 9, use the tables above to answer the problems.

7. Susan is 30 years old. She wants to purchase a $50,000, 5-year term-life insurance policy.
What is her annual premium?
$106.50

8. Ryan is 55 years old. He wants to purchase a $60,000, 5-year term-life insurance policy.
What is his annual premium?
$528.60

9. Bruce is single and has a health insurance plan with the benefits shown in the table
provided. His recent network health care costs include co-payments for 7 physician visits
and 8 specialist visits. Following hospital surgery, he made co-payments for 10 physical
therapy visits, and he had 60 home visits from a nurse at $55 each. His hospital admission
charge was $225 and his hospital bill was $14,560. What amount did he pay?
$2,171

10. Irina is getting dividend payments of $1573 from her 5,720 shares of stock. How much
was the dividend payment per share?
$0.275

11. Taylor bought 3,400 shares of a stock that will pay $0.18 per share in dividends. She
wants to use her money to purchase a new computer for $620. Will she have enough
money?
no, $8 short

12. On January 23, 2012, Julia bought 400 shares of Intel Corporation (INTC) at $20.00 per
share. She sold half her shares on February 6, 2012 at a price of $21.00 per share. What is her
profit?
$3,800

13. Your team wants to invest $4000 of its profits in companies that develop recycling
facilities. The team wants to split the $4000 equally among five companies. The first
investment is to buy stock in Casella Waste Systems (CWST). The company is selling its stock
at $16 per share. How many shares can your team afford to purchase?

14. According to the article you read on Insurance Basics, name 4 factors that can raise your
auto insurance premiums?
Age
Driving record
Gender
Credit History

15. According to the article you read on Insurance Basics, what are 3 things you can do to
reduce your auto insurance premiums?
Choose higher deductible
Drive less
Get married