4.26_AMDM_Simple & Compound Interest

4.26_AMDM Simple & Compound Interest

Multiple Choice

WARM UP 4.26

What is the correct definition of interest?

• money paid to you by a bank for the money you have in a bank account

• put into a bank account

• to borrow something

Multiple Choice

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

• Principle
• Interest
• Time, in hours
• Time, in years

Multiple Choice

The simple interest formula is I=Prt.  The P represents the principle.  The principle is ___________________.  

• the amount of money borrowed or deposited
• the percent interest for his year
• the amount taxed
• the amount the bank owes you for being a customer at their bank

Multiple Choice

The rate is given as a percent (%).  Before using it in the simple interest formula, you must first convert it to a______.

• fraction
• decimal
• ratio
• dollar amount

Multiple Choice

What does the n stand for in this formula?

• Initial amount

• Final amount

• Rate

• Time

• The number of times compounded per year

Multiple Select

Which of the following can be used for P? Select all that apply.

• starting amount

• initial

• principal

• total amount

Multiple Choice

What does P represent?

• interest rate

• time

• principal

• total amount

Multiple Choice

What does t/n represent?

• interest rate

• time

• principal

• total amount

Multiple Choice

Bruno was given $2000 at birth . His parents invested it at a 2% interest rate compounded annually. No deposits or withdrawls were made. Which expression can be used to determine how much money Bruno had in the account when he turned 13?

• 2000(1+0.02)¹³

• 2000(1-0.02)¹³

• 2000(1+0.02)¹⁶

• 2000(1-0.02)¹⁶

Multiple Choice

If you are calculating the simple interest and you are given the time in months.  How can you find the time in years?

• divide 12 by the months
• multiply 12 times the months
• divide the months by 12
• change the months to a decimal

Multiple Choice

How many times a year is annually?

• 1

• 4

• 52

• 365

Multiple Choice

How many times a year is quarterly?

• 1

• 4

• 52

• 365

Multiple Choice

Identify the number of compounding periods when interest is compounded weekly.

• 52

• 26

• 365

• 12

Multiple Choice

Identify the number of compounding periods when interest is compounded every 6 months.

• 6

• 3

• 2

• 12

Multiple Choice

Identify the number of compounding periods when interest is compounded daily.

• 365

• 52

• 1

• 26

Time to Practice

IXL Assignment Posted in Google Classroom