Everfi: Financial Literacy Questions and answers 2023

Everfi: Financial Literacy Questions and answers 2023What is the "Rule of 72"? a very close estimate for seeing how long it takes for an investment to double. You just divide 72 by the interest rate. If the interest rate is 8% you divide 72/8=9 Which type of compound interest will benefit you more? The more frequently your interest compounds, the more interest you will earn over time. SIMPLE INTEREST accounts compound only once per year. What are examples of good savings vehicles? Money Market Savings Account (MMA) which is a type of savings vehicle that requires high minimum balances but offers higher interest rates, or a Certificate of Deposit, which is a type of savings vehicle in which you put your money away for a certain amount of time, called a term, to allow your principal to earn interest. What is the number at the upper right-hand area of a check? Check number What type of bank account offers no interest? Credit Union What type of bank account offers interest? Online bank What is the different set of numbers on the bottom of a check? What are their purposes? The routing number which identifies which bank the money is coming from, and the account number which identifies which account the money is coming from. Which establishment as the highest fees? Retail Banks What has the lowest fees or costs to use? Cash What is the term referring to yearly interest for your credit card? Annual percentage rate What is good credit usually required for? Loans for necessities like a house or a car Who tracks your credit history? Credit Bureaus (Equifax, Transunion, and Experian) 00:02 01:11 What could potentially damage your credit score? 1) Paying a credit card bill late 2) Opening 3 credit cards at once 3) Ignoring a late payment notice 4) Using a large percent of your credit limit What form do students complete to receive federal financial aid for higher education? FAFSA What happens when you borrow a subsidized student loan? The government will cover the interest you accumulated on the loan while you are in school. After you graduate, you are responsible for paying the interest on the loan What is the advantage of student loans? The interest rate is fixed What is the period before you have to begin repaying your student loans? It is a grace period so you don't have to pay your loan 6 months after graduating What determines if you should rent or buy a home? How much you can afford and how long you will need to live there What are benefits to renting? Renting is more flexible for people who move a lot, and renting costs less than buying a house What are the responsibilities of a renter vs. an owner? A renter follows the landlord's rules and pays less but an owner can make their own rules and pays more. What are some examples to take into consideration when deciding to buy or lease a car? How much you will need to drive the vehicle, and how much money is in your savings account By what date must federal taxes typically be filed and sent to the IRS? April 15th Which for is your employer required to send to you before you file your tax return? W-2 Define deductible a specified amount of money that the insured must pay before an insurance company will pay a claim Define co-pay fixed fee that you pay for covered medical services. Define monthly premium the amount you pay the insurance company every month for coverage