Estimating College & Interest Practice

Estimating the Cost of College

Objective: I can estimate the cost of a two-year and four-year college education, including family contribution, and a savings plan to contribute to the total cost.

Vocabulary

Tuition

The fee charged for instruction at a school or university.

Scholarship

A sum of money given to a student to help pay the further instruction.

Multiple Choice

Jeremy will be attending the University of Texas - Austin in the fall. The tuition for the first year costs $22,000.

Jeremy saved $3,000 working over the summer. He applied for a $10,000 scholarship.

If Jeremy receives the scholarship, which amount is the closest to the minimum that Jeremy will need to save each month in order to pay off the remaining cost at the end of 12 months?

• $1,584

• $2,217

• $750

• $2,917

Multiple Choice

Jeremy will be attending the University of Texas - Austin in the fall. The tuition for the first year costs $22,000.

Jeremy saved $3,000 working over the summer. He applied for a $10,000 scholarship.

If Jeremy DOES NOT receive the scholarship, which amount is the closest to the minimum that Jeremy will need to save each month in order to pay off the remaining cost at the end of 12 months?

• $1,584

• $2,217

• $750

• $2,917

Simple & Compound
Interest

Objective: I can calculate and compare simple and compound interest earnings.

Multiple Choice

Which is the correct formula for calculating simple interest only?

• $$I=PRT$$

• $$A=P\left(1+R\right)^t$$

• $$A=P+I$$

• $$I=A-P$$

Multiple Choice

Which is the correct formula for calculating the interest only of compound interest earnings?

• $$I=PRT$$

• $$A=P\left(1+R\right)^t$$

• $$A=P+I$$

• $$I=A-P$$

Multiple Choice

Which is the correct formula for calculating the total amount of compound interest earnings?

• $$I=PRT$$

• $$A=P\left(1+R\right)^t$$

• $$A=P+I$$

• $$I=A-P$$

Multiple Choice

Which is the correct formula for calculating the total amount of simple interest earnings?

• $$I=PRT$$

• $$A=P\left(1+R\right)^t$$

• $$A=P+I$$

• $$I=A-P$$

Multiple Choice

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

• $800

• $1,000

• $1,200

• $1,500

Multiple Choice

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?

• $337.56

• $1837.56

• $31500

• $30000

Multiple Choice

Garrison deposited $500 in an account that earns 5% annual interest compounded annually. If he makes no withdrawals or deposits, how much interest will the account earn after 4 years?

• $600

• $100

• $607.75

• $107.75

Multiple Choice

David invests $10,000 in a savings account that pays 3.5% simple interest. If David

makes no withdrawals or deposits to the account, how much will be in the account after 7 years.

• $2,450

• $11,750

• $12,450

• Not here

Multiple Choice

Rudy bought a computer at Best Buy for $560. He was offered a simple interest rate of 5% for one year.  How much would his monthly payments be?

• $28

• $588

• $49

• $46.67

Multiple Choice

• A

• B

• C

• D