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JEOPARDY�Semester 2 Review

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Rules of GROUP Jeopardy

We will sort you into Four Groups at the start

If a teammate asks for a clue, you may help on the mic or chat box

If you cannot answer the question in the time limit, another group may steal the answer and control the board!

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Segment 2 Part 1 Review

Formulas

Sequences

Interest Solving

Credit Cards

Working with Debts

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Formulas $10

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Formulas $50

Identify the ‘n’ value.

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Formulas $100

This formula is one of three interest balances and is known for creating the HIGHEST balance compared to all three when rates and times are the same.

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Formulas $1000 - Match the formulas

This

A) This formula uses the following input in the spreadsheet: (APR%/12, NPER, payment amount, - principal amount)

B) This formula uses the following input in the spreadsheet: (APR%/12, - payment amount, principal amount)

C) This formula uses the following input in the spreadsheet: (APR%/12, NPER, principal amount)

2) FV

3) NPER

  1. PMT

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Sequences $10

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Sequences $50

  • Determine the common ratio

X

0

1

2

3

4

Y

-60

-30

-15

-7.5

-3.75

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Sequences $100

A viral video had 100,000 views on the first day. Each day, the number of views is 80% of the previous day. How many views will the video receive on the fourth day?

Determine the formula for the following sequence:

−30, -24, -18, -12, -6 …

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Sequences $1000

A viral video had 1,000 views on the first day. Each day, the number of views is 80% of the previous day.

What is the formula?

Find the amount on the fourth day?

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Solving Interest $10

The function f(x) = 2001 (.05*10 + 1)represents the amount of money in a savings account where x represents time in years. What does the 2001 represent?

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Solving Interest $50

You deposit $1,500 in a savings account with 2.5% annual simple interest. Find account balance after 3 years?

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Solving Interest $100

You deposit $3,000 into a savings account with 4% annual interest compounded quarterly. What is the balance after 50 months?

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Solving Interest $1000

Which offer for a $8,000 student loan would be the least expensive over 26 months?

Be sure to state the amounts total for each offer.

Offer A is 2.25% simple interest.

Offer B is 2.25% monthly compounded interest.

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Credit Cards $10

Paying my card balance late

Closing a credit card account

Going over my credit limit

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Credit Cards $50

A new credit card holder must decide between two credit cards. The first card offers a current APR of 10.99%. The second card has a current daily periodic interest rate of 0.015%.

Which card would be the better choice?

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Credit Cards $100

An UberOne subscriber pays $100 per year for unlimited free deliveries. The subscriber pays for the service using a credit card with a 12% APR.

If the balance is paid off after 2 months of interest charges, how much more will have been paid instead of using cash?

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Credit Cards $1000

A primary credit cardholder's card has an APR of 20%. The current monthly balance, before interest, is $3200.

Determine how much more the cardholder will pay, making monthly payments of $250, until the balance is paid off, instead of paying off the current balance in full.

Hint* Use a spreadsheet with NPER and PMT formulas

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Working with Debts $10

When working with this type of student loan, you do not have to calculate the interest because the government covers it on behalf of the student! (Thanks Gov’t!)

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Working with Debts $50

A recent college graduate has a $2000 balance on a credit card that charges 12% interest, compounded monthly.

What monthly payment must be made to pay this balance in two years?

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Working with Debts $100

A student is graduating from college in 12 months but will need a loan in the amount of $2,500 for the last three semesters. The student receives a PLUS Loan with an interest rate of 5%, compounded monthly.

What is the balance of the PLUS loan at the time of graduation?

What is the balance of the PLUS loan at the end of the loan?

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Working with Debts $1000

A student is graduating from college in 12 months but will need a loan in the amount of $12,000 for the last two semesters. The student may receive either an unsubsidized Stafford Loan or a PLUS Loan. The terms of each loan are:��Unsubsidized Stafford Loan: annual interest rate of 3.75%, compounded monthly, and a grace period of six months from time of graduation��

PLUS loan: annual interest rate of 5.22%, compounded monthly, with a balance of $12,975.16

Which loan will have a higher balance, and by how much at the time of repayment?

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Answer Key

Formulas

Sequences

Interest Solving

Credit Cards

Working with Debts

What is Simple Interest

What is Arithmetic sequence

What is principal balance?

What are characteristics that decrease credit scores?

Subsidized

What is the number of times interest is compounded

What is 1/2

an = P(rt + 1)

$1612.50

Card 2, because it’s APR is 5.475% which is less than card 1

PMT Formula

94.15

What is Continuously Compounded

an = a1 + d(n-1)

an = 6n - 36

A(n) = P(1 + r/n)^nt

A(n) = 3451.15

100*0.12 = 12/12 = $1 per month

$2

2627.90

and

2766.95

A2

B3

C1

an = a1(r)^n-1

an = 1000(0.8)^n-1

a(4) = 512

Offer A: 8390

Offer B: 8399.28

Offer A is best

=PMT(02%/12,-250,3200)

=429.17

Plus is higher by 281.93