Simple & Compound Interest

1) Gabby invested $100 into a savings account that earned simple interest at a rate of 1.5%.  She plans to keep the money in the account for the next ten years.  How much would she have in the account at the end of ten years?

• $15
• $115       
• $116.05
• $1,500

Tags

CCSS.HSF.BF.A.2

2) Jacob invested $400 into a savings account that earned simple interest at a rate of 1.25%.  He plans to keep it in the account for the next 10 years.  How much interest would he gain in the account after 10 years?

• $50
• $450       
• $500       
• $5,000

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.REI.B.3

CCSS.HSA.SSE.A.1

3)  Jose invests $200 into an account at a rate 2%.  He plans on keeping the account open for 15 years.  If it is a compound interest account, about how much money will he have in the account after 15 years?

• $60         
• $70
• $260       
• $270

Tags

CCSS.HSF-LE.A.1C

4)  Rosa invests her tax return check into an account with a compounded interest rate of 1 3/4 %.  She plans on keeping the account open for 12 years.  If she has $1600.87 in her account at the end of 12 years, approximately how much was her initial investment?

• $1,300
• $1,970
• $7,690
• $11,000

Tags

TEKS.MATH.2A.5B

TEKS.MATH.A.9C

5)  Megan is currently in 8^th grade and wants to begin saving money for college.  She wants to invest $2000 in a simple interest account that pays at a rate of 3.5%.  How many years will she have to save for the account to gain $490 in simple interest? 

• 5 years
• 6 years
• 7 years
• 8 years

Tags

TEKS.MATH.6.10A

6)  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

Tags

TEKS.MATH.2A.5B

TEKS.MATH.A.9C

7)  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.  What is the difference in the amount of interest each account pays?

• $27.28
• $92.72
• $120       
• $972.72

Tags

TEKS.MATH.2A.5B

TEKS.MATH.A.9C

8)  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. Option A is a simple interest account with a time period of 10 years. Option B is a compound interest account with a time period of 12 years.  What would be his account balance in Option B?

• $4,277.28
• $900
• $1,277.28
• $1,080

Tags

TEKS.MATH.2A.5B

TEKS.MATH.A.9C

9)  A simple interest account earns $75 at a rate of 1.5% over the course of 5 years.  What was the principal amount on the account?

• $5 
• $56 
• $100       
• $1,000

Tags

TEKS.MATH.6.7B

10)  A compound interest account has accrued an account balance of $1,159.27 over the course of 5 years.  The interest rate paid was 3%.  Which is closest to the principal amount on the account?

• $1,000 
• $1,300
• $300
• $4,300

Tags

TEKS.MATH.2A.5B

TEKS.MATH.A.9C