Credit & Debt Basics

lessonbunny.com

Answer Key & Explanations

Credit & Debt Basics · Grade 10 · Worksheet 2

1. Aroha has saved $8 from doing chores. Then Aroha earns $20 more by helping a neighbor. How much money does Aroha have in total? Answer: 28 Solution: Start with the money saved from chores: $8. Add the money earned from helping: $20. Total money: $8 + $20 = $28.
   Full step-by-step solution

   Step 1: Start with the money saved from chores: $8. Step 2: Add the money earned from helping: $20. Step 3: Total money: $8 + $20 = $28. The answer is $28.

2. Ava has 45 baseball cards. Ava gives away 29 cards to a friend. How many baseball cards does Ava have left? Answer: 16 Solution: Ava starts with 45 baseball cards. Subtract the cards given away: 45 - 29 = 16.
   Full step-by-step solution

   Step 1: Ava starts with 45 baseball cards. Step 2: Subtract the cards given away: 45 - 29 = 16. The answer is 16 cards.

3. Noah has saved $38 from doing chores. Then Noah earns $7 more by helping a neighbor. How much money does Noah have in total? Answer: 45 Solution: Start with the money saved from chores: $38. Add the money earned from helping: $7. Total money: $38 + $7 = $45.
   Full step-by-step solution

   Step 1: Start with the money saved from chores: $38. Step 2: Add the money earned from helping: $7. Step 3: Total money: $38 + $7 = $45. The answer is $45.

4. Harper has 49 baseball cards. Harper gives away 49 cards to a friend. How many baseball cards does Harper have left? Answer: 0 Solution: Harper starts with 49 baseball cards. Subtract the cards given away: 49 - 49 = 0.
   Full step-by-step solution

   Step 1: Harper starts with 49 baseball cards. Step 2: Subtract the cards given away: 49 - 49 = 0. The answer is 0 cards.

5. Isabella has a credit card with a 17% annual interest rate. She carries a balance of $2,700 for one month. How much interest will she be charged for that month? Answer: 38.25 Solution: Convert the annual interest rate to a monthly rate by dividing by 12. 17% annual rate = 17/12 = 1.4167% monthly rate. Convert the monthly percentage rate to a decimal for calculation.
   Full step-by-step solution

   Step 1: Convert the annual interest rate to a monthly rate by dividing by 12. 17% annual rate = 17/12 = 1.4167% monthly rate. Step 2: Convert the monthly percentage rate to a decimal for calculation. 1.4167% = 0.014167. Step 3: Multiply the balance by the monthly interest rate. $2,700 × 0.014167 = $38.25. The interest charged for one month is $38.25.

6. Aroha is considering two different student loan options for her college education. Option 1 charges 7% simple interest annually on the principal amount of $15,000. Option 2 charges 5% simple interest annually on the same principal. If Aroha plans to pay back the loan after 3 years, which option will result in lower total interest paid? Answer: B. Option 2 Solution: Simple interest is calculated using the formula I = P × r × t, where I is interest, P is principal, r is interest rate, and t is time.
   Full step-by-step solution

   Simple interest is calculated using the formula I = P × r × t, where I is interest, P is principal, r is interest rate, and t is time. When comparing loans with the same principal and time period, the interest rate becomes the deciding factor. A lower interest rate means you'll pay less money overall for borrowing the same amount for the same duration. This is why shopping for the best interest rate is important when taking out loans.

7. Isabella took out a student loan for $12,000 at an annual interest rate of 8.5%. If she doesn't make any payments during her 4-year college program, how much interest will accrue on the loan by the time she graduates? Answer: 4080 Solution: Identify the principal amount: $12,000 Identify the annual interest rate: 8.5% = 0.085 Identify the time period: 4 years Use the simple interest formula: Interest = Principal × Rate × Time Calculate: Interest = 12000 × 0.085 × 4 Multiply: 12000 × 0.085 = 1020 Multiply: 1020 × 4 = 4080 The total…
   Full step-by-step solution

   Step 1: Identify the principal amount: $12,000 Step 2: Identify the annual interest rate: 8.5% = 0.085 Step 3: Identify the time period: 4 years Step 4: Use the simple interest formula: Interest = Principal × Rate × Time Step 5: Calculate: Interest = 12000 × 0.085 × 4 Step 6: Multiply: 12000 × 0.085 = 1020 Step 7: Multiply: 1020 × 4 = 4080 Step 8: The total interest accrued is $4,080

8. Maya owes 87 dollars to a friend for a borrowed video game. Maya pays back 5 dollars. How much does Maya still owe? Answer: 82 Solution: The original debt is $87. Subtract the payment made: $87 - $5 = $82.
   Full step-by-step solution

   Step 1: The original debt is $87. Step 2: Subtract the payment made: $87 - $5 = $82. The answer is $82 dollars still owed.