Researchers at some of the nation’s leading universities have been studying financial literacy for years. Results...

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Researchers at some of the nation’s leading universities havebeen studying financial literacy for years. Results from their workprovide interesting insights into the financial capabilities of theaverage American. Their findings are a bit sad. The averageAmerican is, well, basically a “C” student when it comes tofinancial issues— and we are talking about adults! What follows area number of questions that these researchers asked surveyparticipants to think about. See if you can beat the nationalaverages for correct and incorrect responses!
If the chance of getting a disease is 11%, how many people outof 1,200 would be expected to get the disease?

The expected number of people out of 1,200 to get the diseaseis
If 4 people all have the winning number in the lottery and theprize is $2.4 million, how much will each of themget?(Round answers to 0 decimal places, e.g.5,275.)

Each of them will get $
Let’s say you have $210 in a savings account. The account earns10% interest per year. How much would you have in the account atthe end of 4 years? (Round answers to 0 decimal places,e.g. 5,275.)

At the end of 4 years the balance in the account will be $
Suppose you had $290 in a savings account and the interest ratewas 2% per year. After 5 years, how much do you think you wouldhave in the account if you left the money to grow: more than $296,exactly $296, or less than $296?

The balance in account after 5 years will be
Imagine that the interest rate on your savings account is 1% peryear and inflation is 2% per year. After 1 year, would you be ableto buy more than, exactly the same as, or less than today with themoney in this account?

After 1 year you would be able to buy (more than, exactly the same,less than) today with the money in this account.
Do you think that the following statement is true or false?“Buying a single company stock usually provides a safer return thana stock mutual fund.”

The given statement is (true or false)

Answer & Explanation Solved by verified expert

3.7 Ratings (580 Votes)

1 Chances of getting a disease 11 Number of people 1200 Number of people who can get the disease 120011100 132 people 2 Number of people who have winning lottery numbers 4 See Answer

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Researchers at some of the nation’s leading universities havebeen studying financial literacy for years. Results from their workprovide interesting insights into the financial capabilities of theaverage American. Their findings are a bit sad. The averageAmerican is, well, basically a “C” student when it comes tofinancial issues— and we are talking about adults! What follows area number of questions that these researchers asked surveyparticipants to think about. See if you can beat the nationalaverages for correct and incorrect responses!If the chance of getting a disease is 11%, how many people outof 1,200 would be expected to get the disease?The expected number of people out of 1,200 to get the diseaseisIf 4 people all have the winning number in the lottery and theprize is $2.4 million, how much will each of themget?(Round answers to 0 decimal places, e.g.5,275.)Each of them will get $Let’s say you have $210 in a savings account. The account earns10% interest per year. How much would you have in the account atthe end of 4 years? (Round answers to 0 decimal places,e.g. 5,275.)At the end of 4 years the balance in the account will be $Suppose you had $290 in a savings account and the interest ratewas 2% per year. After 5 years, how much do you think you wouldhave in the account if you left the money to grow: more than $296,exactly $296, or less than $296?The balance in account after 5 years will beImagine that the interest rate on your savings account is 1% peryear and inflation is 2% per year. After 1 year, would you be ableto buy more than, exactly the same as, or less than today with themoney in this account?After 1 year you would be able to buy (more than, exactly the same,less than) today with the money in this account.Do you think that the following statement is true or false?“Buying a single company stock usually provides a safer return thana stock mutual fund.”The given statement is (true or false)