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MTH1W Financial Literacy
Grade 9 Unit 7 — practice questions with full solutions

Simple and compound interest, budgeting, gross versus net pay, unit-price comparison, currency conversion and comparing borrowing options.

Free MTH1W financial literacy practice for Grade 9 students in Ontario. These 11 questions cover the same material as a typical unit test or exam review on this topic, and every one comes with a complete worked solution — not just an answer key. Useful whether you are preparing for a MTH1W unit test, catching up on a lesson, or reviewing before the final exam.
MTH1W · Grade 9 Strand F — Financial Literacy 10 core 1 challenge
1Core
Find the simple interest earned on $2000 invested at 4% per year for 3 years, and the total amount.
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  1. Use I = Prt, where P = 2000, r = 0.04, t = 3.
  2. Substitute: I = 2000 × 0.04 × 3.
  3. Calculate: 2000 × 0.04 = 80 per year, and 80 × 3 = 240.
  4. Total amount = principal + interest = 2000 + 240.
Final answerInterest $240; total $2240
2Core
Now invest the same $2000 at 4% compounded annually for 3 years. Find the total amount and state how much more it earns than simple interest.
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  1. Use A = P(1 + r)n = 2000(1.04)3.
  2. Calculate (1.04)3 = 1.124864.
  3. Multiply: 2000 × 1.124864 = 2249.728 → $2249.73.
  4. Compare with the simple-interest total of $2240: the difference is $9.73.
  5. Compound interest earns more because each year's interest also earns interest.
Final answer$2249.73 — $9.73 more than simple interest
3Core
A student's monthly income is $2400. They budget 35% rent, 15% food, 10% transport and 20% savings. How much money, in dollars, is left for everything else?
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  1. Add the listed percentages: 35 + 15 + 10 + 20 = 80%.
  2. The remainder is 100% − 80% = 20%.
  3. Calculate 20% of 2400: 0.20 × 2400.
Final answer$480
4Core
An employee's gross monthly pay is $3200. Deductions total 22% of gross pay. Find the net pay.
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  1. Net pay is what remains after deductions.
  2. If 22% is deducted, the employee keeps 100% − 22% = 78%.
  3. Calculate: 3200 × 0.78.
Final answer$2496
5Core
Phone A costs $600 upfront. Phone B is free upfront but adds $28 per month to the plan for 24 months. Which is cheaper overall, and by how much?
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  1. Total cost of Phone B: 28 × 24 = $672.
  2. Total cost of Phone A: $600.
  3. Compare: 672 − 600 = 72.
  4. The 'free' phone is actually the more expensive option once the contract is complete.
Final answerPhone A is cheaper by $72
6Core
40%20%15%15%10%Rent — 40%Food — 20%Transport — 15%Savings — 15%Other — 10%Monthly income: $3000
The pie chart shows how a $3000 monthly income is budgeted. (a) Calculate the dollar amount for each category. (b) Find the angle at the centre of the chart for the Rent slice. (c) If rent rises to $1400 and the total income does not change, what percent of income is now spent on rent?
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  1. (a) Multiply each percent by $3000: Rent 0.40 × 3000 = $1200; Food 0.20 × 3000 = $600; Transport 0.15 × 3000 = $450; Savings 0.15 × 3000 = $450; Other 0.10 × 3000 = $300.
  2. Check they total the income: 1200 + 600 + 450 + 450 + 300 = $3000. ✔
  3. (b) A full circle is 360°, so each 1% is 3.6°. Rent is 40%: 40 × 3.6 = 144°.
  4. (c) New percent = 1400 ÷ 3000 = 0.4666… × 100 ≈ 46.7%.
  5. That is roughly 6.7 percentage points more of the budget going to rent — money that must come out of another category.
Final answer(a) $1200, $600, $450, $450, $300   (b) 144°   (c) ≈ 46.7%
7Core
The exchange rate is 1 CAD = 0.74 USD. Convert $850 CAD to USD.
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  1. Multiply the Canadian amount by the rate.
  2. 850 × 0.74.
  3. Calculate: 850 × 0.74 = 629.
Final answer$629 USD
8Core
Which is the better buy: 750 mL of juice for $4.50, or 1.2 L for $6.60? Show the unit prices.
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  1. Convert to the same unit — use price per litre.
  2. Option 1: 750 mL = 0.75 L, so 4.50 ÷ 0.75 = $6.00 per litre.
  3. Option 2: 6.60 ÷ 1.2 = $5.50 per litre.
  4. Compare: $5.50 is less than $6.00.
Final answerThe 1.2 L bottle ($5.50/L versus $6.00/L)
9Core
A person borrows $1500 at 6% simple interest for 2 years, repaying in 24 equal monthly instalments. Find the total repaid and the monthly payment.
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  1. Interest: I = 1500 × 0.06 × 2 = $180.
  2. Total to repay: 1500 + 180 = $1680.
  3. Monthly payment: 1680 ÷ 24.
Final answerTotal $1680; monthly payment $70
10Core
A student wants to save $1800 over 15 months by putting away the same amount each month. How much must they save monthly?
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  1. Divide the goal by the number of months.
  2. 1800 ÷ 15.
  3. Calculate: $120 per month.
Final answer$120 per month
11Challenge
A credit card has a balance of $1200 and an annual interest rate of 19.99%. If no payments are made for one year and interest compounds annually, how much is owed? Comment on what this shows.
Show the full solution
  1. Use A = P(1 + r): 1200 × 1.1999.
  2. Calculate: 1200 × 1.1999 = 1439.88.
  3. The debt grows by $239.88 in a single year with no purchases at all.
  4. Real credit cards compound monthly, which makes the true figure higher still — this is why carrying a balance is so costly.
Final answer$1439.88 — nearly $240 of interest added without spending anything

MTH1W Financial Literacy — common questions

Short answers to the things students ask most about this unit.

What is the difference between simple and compound interest?

Simple interest is calculated only on the original amount each period. Compound interest is calculated on the original amount plus the interest already earned, so it grows faster.

How do you compare two prices with different sizes?

Convert both to the same unit — usually price per litre, per kilogram or per 100 g — then compare those unit prices directly.

More MTH1W practice — grade 9 math

MTH1W Number SenseMTH1W Algebraic Expressions & Exponent LawsMTH1W Solving Linear EquationsMTH1W Linear Relations & GraphingAll MTH1W units
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