Simple and Compound Interest Flashcard

Front

What is the formula for simple interest?

Back

I=Prt

Front

The principle in the simple interest formula I=Prt is:

Back

the amount of money borrowed or deposited

Front

How to convert time in months to years for simple interest calculation?

Back

Divide the months by 12.

Front

A bank is offering 2.5% simple interest on a savings account. If you deposit $5,000, how much interest will you earn in three years?

Back

$375

Front

A bank is offering 2.5% simple interest on a savings account. If you deposit $5,000, what will be the total amount of money in your savings account after three years?

Back

$5375

Front

Sarah borrowed $18,000 for 4 years at an annual simple interest rate of 7%. How much interest will she pay at the end of the 4 years?

Back

$5040

Front

Sarah borrowed $18,000 for 4 years at an annual simple interest rate of 7%. What is the total amount she will repay for the car loan?

Back

$23040

Front

A bank is offering 7% annual compound interest on a savings account. If you deposit $1,500, what will be the total amount of money in your savings account after three years?

Back

$1837.56

Front

Riley invested $1,000 in savings bonds at 6.75% interest compounded semi-annually for 15 years. How much total will Riley earn?

Back

$2,706.86

Front

Olivia buys furniture on credit with 9.5% interest compounded quarterly. She spent $7,400. How much will she pay after 8 years?

Back

$15,683.28