# Financial Literacy Month on April, 2020: Financial Current Events?

April, 2020 is Financial Literacy Month 2020. National Financial Literacy Month is recognized in the United States in April in an effort to highlight the importance of financial literacy and teach Americans how to establish and maintain healthy financial habits. National Financial Literacy Month is recognized in the United States in April in an effort to highlight the importance of financial literacy and teach Americans how to establish and maintain healthy financial habits. Try this topic Long Term Personal Financial Planning

deals with savings required per month, the effect of compound interest, type of

investment preferred,( stock, mutual fund, real estate,gold etc) pattern of

risk element, how much risk can be taken,

effect of inflation etc. future value of the first \$300: = \$300(1+.072)^6 = \$300(1.51764) = 455.29

interest earned = 155.29

future value of the additional \$100 deposits made in months 2 through 6

second month \$100(1+.072)^5 = \$100(1.415709) = 141.57

interest earned 41.57

third month: \$100(1.+.072)^4 = \$100(1.320624) = 132.06

interest earned 32.06

fourth month \$100(1+.072&^3 = \$100(1.231925) = 123.19

interest earned 23.19

fifth month: \$100(1+.072)^2 = \$100(1.149184) = 114.92

interest earned 14.92

sixth month: \$100(1+.072)^1 = \$100(1.072) = 107.20

interest earned 7.20

total interest earned: 155.29 + 41.57 + 32.06 + 23.19 + 14.92 + 7.20 = 274.23 Financial literacy school assignment problems? I=Prt?

using the formula I = prt

1. the time is 3 months, which is 3/12 of a year or 1/4 or .25; 4% = .04

,,,,,I = \$400. x .04 x .25

,,,,,,,= 16 x .25 = \$4

2. compounded quarterly means every 3 months (1/4 of 12 months)

so at the end of the first quarter, you have \$400 + \$4 (see problem 1) = \$404.

at the end of the 2nd quarter, you have \$404 x .04 x .25 =\$4.04; now you have \$404 + 4.04 = \$408.04

at the end of the 3rd quarter (9 months), you have 408.04 x .04 x .25 = \$4.08; now you have \$408.04 + 4.08 = \$\$412.12

3. Since you started with \$400 and now have \$412.12, you have earned \$12.12 in interest.

4. I honestly don't know why you don't get the full amount.

Holidays also on this date Wednesday, April 1, 2020...