Money Puzzlers: HighlightsKids.com

Lots of people have questions about banks. Is all the money kept in a safe?
Where do banks get the money that they lend to others? Could you
lose your money if your bank gets into trouble? Find answers to these questions
and more in How Banks Work, then try solving the money puzzlers below!

1. You open a savings account that pays 3 percent interest each year. If you deposit $100, how much will you have in your account by the end of the year?
$103
$130
$300

2. What does FDIC stand for?
Friendly Depositor Interest Company
First Dollar Is Complimentary
Federal Deposit Insurance Corporation

3. You deposit $400 in a bank. By the end of one year, your account has $416 in it. What percent interest has it earned?
3 percent
4 percent
5 percent

4. Where do banks store people’s valuables, such as jewelry and important papers?
In the tellers’ desks
In safe-deposit boxes
In buried shoe boxes

5. You’d like to attend Sunny Valley Middle School. However, the tuition is $5,000, and you don’t have that much money. Your bank offers to lend you the money for one year at 5 percent interest. If you accepted the loan, what would be the total amount that you’d have to pay to the bank by the end of that year?
$5,000
$5,250
$5,500