1. You opened a savings account in Bank of Hoosiers at the start of last year with a deposit of $2,000, which you saved from your previous summer jobs. You earned $23.5 in interest from your saving account in the past year. What's your APY (Annual Percentage Yield) approximately?

A. 0.59%

B. 1.25%

C. 1.18%

D. 2.35%

2. You work for Hoosier Corp, a great company that offers a 401(k) plan for all of its employees. One of the investment options in the 401(k) plan is a savings account which has a APY of 2.5%. At the start of last year, you contributed $1,000 to your 401(k) account and put the money in the savings account in the 401(k) plan.

You also have a savings account with Bank of Hoosier which has a APY of 3%. This account is taxable. At the start of last year, you deposited $2,000 to this savings account.

If your tax rate is 15%, which account gives you the higher after-tax rate of return last year? Assume you are not withdrawing any money from your 401(k) account but let it grow tax-deferred.

A. The savings account in your 401(k) plan

B. The savings account with Bank of Hoosier

C. The after-tax rate of returns are the same for both accounts

3. The S&P 500 Index is down about 25% YTD (year to date), which makes a lot of people nervous but makes you excited because you have a long time before retirement and you have cash yet to be invested.

In your savings account with an FDIC-insured bank, you have $2,000, which you are reasonably sure that you won't need it for the next 10 years.

You believe in the long-term (10+ years), the S&P 500 index is likely, but not guaranteed, to compound at a rate higher than the 3% APY offered by the savings account. You decided to put $1,000 of your $2,000 to a S&P 500 Index fund. You opened a brokerage account, transferred $1,000 from your savings account to the brokerage account, and purchase some shares of a S&P 500 index fund.

Which of your account is FDIC-insured?

A. Both your savings account and your brokerage account

B. Your savings account

C. Your brokerage account

D. Neither your savings account nor your brokerage account