Simple and Compound Interest FLASHCARD

Front

What does the A represent in the compound interest formula A = P(1 + r)^t?

Back

The total amount of money after a certain amount of time.

Front

Caiden earned $475 from mowing lawns last summer. He deposited this money in an account that pays an interest rate of 3.8% compounded annually. What will be his balance after 15 years?

Back

$831.10

Front

Write the percent as a decimal: 4.3%

Back

.043

Front

What is the formula for simple interest?

Back

I=Prt

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

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

A bank is offering 7% annual compound interest on a savings account. If you deposit $1,500, how much interest will you earn in three years?

Back

$337.56

Front

Ricco deposits $500 at 2.5% interest compounded annually for 3 years. Wally deposits $500 at 5.1% interest compounded annually for 2 years. Who will earn the greatest amount of interest?

Back

Wally will earn $13.85 more than Ricco

Front

Harley wants to buy a car that costs $15,000. Bank One offers her a 3-year loan at a simple interest rate of 9%. Bank Two offers her a 5-year loan at an annual compound interest rate of 3.5%. Which bank offer should she choose?

Back

She will pay $1,234.70 less if she chooses Bank Two.