Simple and Compound Interest Review

Simple and Compound Interest Review

Multiple Choice

What is Simple Interest?

• Interest Calculated on the Principal ONLY

• Interest Calculated on the Principal AND Interest Earned

Multiple Choice

What is the formula for Simple Interest?

• I=Prt

• A=(1+r)^t

Multiple Select

What is Principal?

• The Total Amount Earned

• The Amount You Owe the Bank

• The initial amount

• Your deposit or investment

Math Response

Convert this rate into a decimal: 1.3%

Type answer here

Correct Answer: .013

Deg^°

Rad

Math Response

Convert this rate into a decimal: .5%

Type answer here

Correct Answer: .005

Deg^°

Rad

Math Response

Convert this decimal into a percent: .0325

Type answer here

Correct Answer: 3.25

Deg^°

Rad

Math Response

Convert this time: 3 months

Type answer here

Correct Answer: \frac{3}{12}

Deg^°

Rad

Math Response

Calculate the Interest for a loan of 10,000 with a simple interest rate of 6% over 12 months.

Type answer here

Correct Answer: 600

Deg^°

Rad

Math Response

What is the total amount in the account on the previous question?

Type answer here

Correct Answer: 10600

Deg^°

Rad

Drag and Drop

Compound Interest is interest earned on the

Placeholder

Drag these tiles and drop them in the correct blank above

Principal AND Interest

Principal ONLY

Interest ONLY

Multiple Choice

What is the Compound Interest Formula?

• I=Prt

• A=P(1+r)^t

Multiple Choice

What are you solving for when you use the Compound Interest formula?

• Rate

• Principal

• Interest

• Total Amount

Multiple Choice

In Compound Interest, what formula would you use to find the Interest earned?

• I=Prt

• You don't have to use a formula, you already solved for it.

• A=I+P

• I=A-P

Multiple Choice

Jacob borrows $500 from Abraham and agrees to have the loan compounded annually for 5 years with an interest rate of 2.5%. How much will the total amount be that Jacob owes?

• $565.70

• $262609.38

• $65.70

• $630.20

Multiple Choice

You borrowed $59,000 for 2 years at 11% which was compounded annually.  What total will you pay back?

• $13,693.90
• $1,363.90
• $72,693.90
• $73,793.90

Multiple Choice

A bank is offering 7% annual compound interest on a savings account.  If you deposit $1,500, how much interest will you earn in three years?

• $1837.56
• $337.56
• $30000
• $31500