simple and compound interest

Front

Anne deposited $500 in an account that earns 6% simple annual interest. Shelly deposited $500 in an account that earns 6% annual interest compounded annually. They leave the money in the account for 4 years. What is the difference in their account balances?

Back

Shelly will have $11.24 more in her account than Anne has in her account.

Front

Carly deposited $800 in an account that earns 6% compounded annually. Lara deposited $800 in an account that earns 6% simple interest. How much will each girl have in their account at the end of 10 years if they make no withdrawals or deposits?

Back

Carly: $1432.68 Lara: $1280

Front

What is the method of computing interest on interest earned in previous years called?

Back

compound interest

Front

When calculating interest, how do you write the percent? Options: a fraction, a decimal, a round number, not enough information

Back

a decimal

Front

Equation to find the value of a $5,000 savings account after 3 years at 4% interest compounded annually.

Back

A = 5,000(1 + 0.04)³

Front

Heather invested $8,000 in a 4-year Certificate of Deposit (CD) that pays 4.1% interest compounded annually. What is the value of the CD at the end of the 4 years?

Back

$9,394.92

Front

David invests $10,000 in a savings account that pays 3.5% simple interest. If David makes no withdrawals or deposits to the account, how much will be in the account after 7 years?

Back

$12,450

Front

Garrison deposited $500 in an account that earns 5% annual interest compounded annually. How much interest will the account earn after 4 years?

Back

$107.75

Front

Jared invests $10,000 in a savings account that pays 3% simple interest. How many years will it take for the account to grow to $12,700, if he makes no withdrawals or deposits?

Back

9 years

Front

Gilberto invests $10,000 in a savings account that pays 4.75% simple interest. If Gilberto makes no withdrawals or deposits to the account, how much will be in the account after 7 years?

Back

$13,325