Flashcard: Compounding and Simple Interest

Front

Kennedy won $3,000 from a radio contest. If she puts this money in a bank account that earns 2.9% interest compounded quarterly, how much total will she earn in 10 years?

Back

$4005.09

Front

Determine the balance in the account if you deposited $4,000 at an interest rate of 3.4% compounded quarterly for three years.

Back

$4427.62

Front

Jerry borrowed $4,000 for 5 years at 6% simple interest rate. How much interest is that?

Back

The interest is calculated using the formula: Interest = Principal × Rate × Time. Therefore, Interest = $4,000 × 0.06 × 5 = $1,200.

Front

The simple interest formula is I=Prt. What does the t represent?

Back

Time

Front

Jack deposited $1,400 in his bank account. After 3 years, the account earned $294 in interest. Find the simple interest rate.

Back

7%

Front

What will be Caiden's balance after 15 years if he deposits $475 at an interest rate of 3.8% compounded annually?

Back

$831.10

Front

Captain America invests $5000 in a savings account which pays compound interest at the rate of 2.5% per year. If the interest is compounded annually calculate the total interest in 6 years correct to the nearest dollars.

Back

$798.46

Front

How much interest will Joe pay if he borrows $19,000 for a car at 3% interest for 5 years?

Back

$2,850

Front

Olivia would like to buy some new furniture for her home. She decides to buy the furniture on credit with 9.5% interest compounded quarterly. If she spent $7,400, how much total will she have paid after 8 years?

Back

$15,683.28

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. Which statement is true about the two investments after 4 years?

Back

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