Simple and Compound Interest

Simple & Compound Interest

Compound

​Simple

2 Types of Interest

Match

TABLE TALK

Match the following percentages with their equivalent decimal

• 25%

• 3%

• 10%

• 92%

• .5%

.25

.03

.1

.92

.05

• .25

• .03

• .1

• .92

• .05

Dropdown

TABLE TALK

Ivan deposits $5,000 into an account that pays simple interest at a rate of 5% per year. How much interest will he be paid in the first 3 years?

What is the principle? ​

Select answer

What is the rate? ​

Select answer

What is the time? ​

Select answer

Multiple Choice

INK-PAIR-SHARE

Dan borrowed $2,000 for 6 months at 12% annual simple interest rate. How much interest is that?

• $120
• $144
• $1,200
• $1,440

Multiple Choice

TABLE TALK

Bruno was given $2000 when he turned 3 years old.  His parents invested it at a 2% interest rate compounded annually.  No deposits or withdrawals were made.  Which expression can be used to determine how much money Bruno had in the account when he turned 16? 

• 2000(1+0.02)¹³
• 2000(1-0.02)¹³
• 2000(1+0.02)¹⁶
• 2000(1-0.02)¹⁶

Math Response

INK-PAIR-SHARE

WHITEBOARD

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?

Type answer here

Correct Answer: 107.75

Deg^°

Rad

Multiple Choice

INK-PAIR-SHARE

Caiden earned $475 from mowing lawns last summer. He deposited this money in an account that pays an interest rate of 3.8% compounded annually. What will be his balance after 15 years?

• $827.52
• $831.10
• $839.45
• $846.80

Multiple Choice

INK-PAIR-SHARE

Mr. Diable invested $3,500 in a 7 year CD that pays 4.2% interest compounded annually. How much interest will the CD earn over the 7 years?

• $147.00

• $245.00

• $1,168.12

• $4,668.12

Multiple Choice

INK-PAIR-SHARE

Sue got an $8000 loan to buy a used car. Due to her bad credit, the interest rate was 16.8%. If the loan length was 60 months, how much did she end up paying for the car?

• $6720

• $14720

• $80,640

• $8672

Math Response

INK-PAIR-SHARE

WHITEBOARD

Chris borrowed $8,000 from a lender that charged simple interest at an annual rate of 7%. When Chris paid off the loan, he paid $1,680 in interest. How long was the loan for, in years?

Type answer here

Correct Answer: 3

Deg^°

Rad

Math Response

INK-PAIR-SHARE

WHITEBOARD

Felipe invested in a savings bond for 6 years and was paid simple interest at an annual rate of 3%. The total interest that he earned was $540. How much did he invest?

Type answer here

Correct Answer: 3000

Deg^°

Rad

Multiple Choice

INK-PAIR-SHARE

TABLE TALK

WHITEBOARD

Clay has 5 years to save money for a car.  He wants to invest $800 in the bank.  He has 2 banks to choose from. Wells Fargo offers a simple interest account with a rate of 4%.  Chase Bank offers a compound interest account with a rate of 4%. Which bank will provide Clay with the most money after 5 years?

• Wells Fargo
• Chase Bank

Multiple Choice

INK-PAIR-SHARE

TABLE TALK

WHITEBOARD

Rosalinda wants to save money for college.  She wants to invest $1000 with the bank that will maximize her savings.  She finds out that both Washington Mutual and Compass Bank offer accounts that pay at a rate of 3%.  However, Washington Mutual offers a simple interest account with a maximum time period of 4 years while Compass Bank offers a compound interest account with a maximum time period of 3 years.  Which account will earn her more money?

• Washington Mutual

• Compass Bank

Multiple Choice

INK-PAIR-SHARE

TABLE TALK

WHITEBOARD

Jose wants to save money for a house and finds two accounts that pay 3% in interest.  He wants to invest $3000.  He has 2 options to invest his money. Chase Bank is a simple interest account with a time period of 10 years. Bank of America is a compound interest account with a time period of 12 years.  Which bank is best?

• Chase Bank

• Bank of America