Simple & Compound Interest Quick Check

Simple & Compound Interest Quick Check

Assessment

Flashcard

Mathematics

12th Grade

Practice Problem

Hard

Created by

Wayground Content

FREE Resource

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16 questions

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1.

FLASHCARD QUESTION

Front

What is the formula for calculating simple interest?

Back

I = Prt, where I is the interest, P is the principal amount, r is the rate of interest per year, and t is the time in years.

2.

FLASHCARD QUESTION

Front

What does the 'P' in the simple interest formula I = Prt represent?

Back

The 'P' represents the principal, which is the amount of money borrowed or deposited.

3.

FLASHCARD QUESTION

Front

If an investment earns interest compounded semi-annually, how many times is the interest calculated in one year?

Back

The interest is calculated 2 times a year.

4.

FLASHCARD QUESTION

Front

What is the difference between simple interest and compound interest?

Back

Simple interest is calculated only on the principal amount, while compound interest is calculated on the principal plus any interest that has been added to it.

5.

FLASHCARD QUESTION

Front

How do you calculate the total amount after compound interest is applied?

Back

Total Amount = P(1 + r/n)^(nt), where P is the principal, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years.

6.

FLASHCARD QUESTION

Front

What is the total amount Karla will earn after investing $1,000 at 6.75% compounded semi-annually for 15 years?

Back

$2,706.86.

7.

FLASHCARD QUESTION

Front

If Courtney saved $2,200 at an interest rate of 5.2% compounded daily for 4 years, what will be the total amount in her account?

Back

$2,708.63.

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