Ricco deposits $500 in an account that earns 2.5% interest compounded annually for 3 years. Wally deposits $500 in an account that earns 5.1% interest compounded annually for 2 years. Who will earn the greatest amount of interest?

Wally will earn $13.85 more than Ricco

Ricco will earn $13.85 more than Wally

Harley wants to buy a car that costs $15,000. Bank One offers her a 3 year loan at a simple interest rate of 9%. Bank Two offers her a 5 year loan at an annual compound interest rate of 3.5%. Which bank offer should she choose?

She will pay $1,234.70 less if she chooses Bank Two.

She will pay $1,234.70 less if she chooses Bank One.

Both Ryan and Tom open their accounts with an initial deposit of $3500. They are both planning a six-year investment and will withdraw their money after 6 years. Who will have a greater balance in six years? How much more will that person have?

Tom will have $83.77 more than Ryan.

Ryan will have $83.77 more than Tom.

Ryan will have $3416.23 more than Tom.

Tom will have $3416.23 more than Ryan.

Rosie will deposit $1,420 in an account that earns 4% simple interest every year for 4 years. Her sister Avery will deposit $1,400 in an account that earns 6% interest compounded annually for 4 years. What is the difference in the amount earned between the two sisters over the 4 years?

Avery will earn $120.27 more than Rosie.

Rosie will earn $120.27 more than Avery.

Avery will earn $1540.27 more than Rosie.

Rosie will earn $1540.27 more than Avery.

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 the bank owes you for being a customer at their bank

Julie borrowed $3,500 for 3 years at 7½% simple interest rate. How much interest is that?

John just opened a savings account and wants to mazimize the amount of interest he earns. Which of the following actions enable him to earn MORE interest?

selecting an account with a higher interest rate

leaving his money in the account for long period of time

transferring money into his checking account each month

Annual Simple & Compound Interest

Authored by Carina Garcia

Mathematics

7th Grade - University

CCSS covered

Used 36+ times

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34 questions

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MULTIPLE CHOICE QUESTION

5 mins • 1 pt

A bank is offering 2.5% simple interest on a savings account. If you deposit $5,000, how much interest will you earn in three years?

$5375

$375

$37500

$42500

MULTIPLE CHOICE QUESTION

1 min • 1 pt

A bank is offering 2.5% simple interest on a savings account. If you deposit $5,000, what will be the total amount of money in your savings account after three years?

$375

$42500

$5375

$37500

Tags

CCSS.7.RP.A.3

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Sarah borrowed $18,000 for 4 years at an annual simple interest rate of 7%. How much interest will she pay at the end of the 4 years?

$5040

$23040

$504000

$18000

Tags

CCSS.7.RP.A.3

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Sarah borrowed $18,000 for 4 years at an annual simple interest rate of 7%. What is the total amount she will repay for the car loan?

$504000

$5040

$23040

$18000

Tags

CCSS.7.RP.A.3

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

John deposited $2,000 into a savings account. How much will John have in his account after 7 months at a yearly simple interest rate of 3¼%?

$2455

$455

$37.92

$2037.92

Tags

CCSS.7.RP.A.3

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

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 QUESTION

5 mins • 1 pt

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

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Annual Simple & Compound Interest

A bank is offering 2.5% simple interest on a savings account. If you deposit $5,000, how much interest will you earn in three years?

A bank is offering 2.5% simple interest on a savings account. If you deposit $5,000, what will be the total amount of money in your savings account after three years?

Sarah borrowed $18,000 for 4 years at an annual simple interest rate of 7%. How much interest will she pay at the end of the 4 years?

Sarah borrowed $18,000 for 4 years at an annual simple interest rate of 7%. What is the total amount she will repay for the car loan?

John deposited $2,000 into a savings account. How much will John have in his account after 7 months at a yearly simple interest rate of 3¼%?

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?

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?

Kara borrowed $21,000 for 5½ years at an annual compound interest rate of 7.5% to buy a car. What is the total amount she will repay the bank for the auto loan?

Kara borrowed $21,000 for 5½ years at an annual compound interest rate of 7.5% to buy a car. How much interest will she pay on top of the principal at the end of the 5½ years?

Aaron deposited $3,000 into a savings account. How much will Aaron have in his account after 5 months at an annual compound interest rate of 3¼%?

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