067 CM Chapter 3 Math Review for Final

Front

What is compound interest?

Back

Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.

Front

How do you calculate the total amount with compound interest?

Back

Total Amount = Principal × (1 + Rate)^Time, where Rate is the annual interest rate and Time is the number of years.

Front

What is simple interest?

Back

Simple interest is calculated only on the principal amount, or on that portion of the principal amount which remains unpaid.

Front

How do you calculate simple interest?

Back

Simple Interest = Principal × Rate × Time.

Front

If Kennedy won $3,000 and the bank offers 2.9% interest compounded yearly, how much will she have in 10 years?

Back

$3,992.78

Front

If Smiley invested $1,000 at 6.75% simple interest, how much will he earn in 10 years?

Back

$1,921.67

Front

How many years will it take John to save $10,000 if he saves $500 each month?

Back

2 years.

Front

What is the formula to calculate the total payment on a loan with compound interest?

Back

Total Payment = Principal × (1 + Rate)^Time.

Front

If the Arnold's took out a loan for $195,000 at 4.3% interest compounded yearly, how much will they pay after 30 years?

Back

$689,546.99.

Front

How much does Dante need to save per month to buy a $4,800 motorcycle in one year?

Back

$400.