Financial Literacy

Imagine that the interest rate on your savings account is 1% per year and inflation is 2% per year. After 1 year, would you be able to buy more than today, exactly the same as today, or less than today with the money in this account?

Suppose you have $100 in a savings account and the interst rate was 2% per year. After 5 years, how much would you have in the account if you left the money to grow?​

Suppose you borrowed $5,000 in student loans to help cover college expenses for the coming year. You can choose to repay this loan over 10 years, 20 years, or 30 years. Which of these repayment options will cost you the least amount of money over the length of the repayment period?

All paycheck stubs show your gross pay (the total you earned before any taxes were taken out for the pay period) and your net pay (the amount of your check after all taxes). The taxes that are commonly taken out include federal, state, and local income tax, Social Security tax and Medicare tax​. On average, what percent of your income should you expect to receive at take-home pay?

Which of the following make up the two largest components of your credit score?