Simple and Compound Interest

Emilio borrows $1200 from a bank with 8% simple interest per year.  How much will he have to pay back total in 2 years?

• $150

• $192

• $1350

• $1392

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

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

• $787.50

• $810

• $812.50

Which is the

compound interest formula?

• A = P(2+r)^t

• I= Prt

• A² + B² = C²

• A = P(1+r)^t

Bilbo Baggins earned $475 from walking long distances 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 2 years?

• $180.50

• $511.79

• $361.00

• $ 36.10

$2,400 is deposited into an account that earns 5.25% simple interest for 3 years. Calculate the simple interest earned.

• $2798.19

• $2778

• $378

• $3780

Suzette deposited $800 into a bank account earning simple interest of 2.5% each year. After 5 years, how much interest had her account earned?

• $100

• $900

• $1000

• $1800

Jefferson places $175 in a bank account yielding compound interest annually of 3%. How much money will Jefferson have in his account after 4 years?

• $499.82

• $499.96

• $21.96

• $196.96

Carter deposits $200 into a new savings account that pays 6% simple interest annually. Reese deposits $200 into a new savings account that pays 6% compounded interest. If both Carter and Reese deposit in their accounts for 6 years, how much more will Reese’s deposit earn in interest that Carter’s deposit?

• $0

• $11.70

• $70.20

• $90.00

Miguel deposits $1,000 into a new savings account that pays 4% simple interest annually. Valeria deposits $1,000 into a new savings account that pays 4% simple interest compounded annually. After 4 years, what will be the difference between the interest earned on Miguel’s $1,000 deposit and the interest earned on Valeria’s $1,000 deposit?

• $0.73

• $9.86

• $35.14

• $48.85

Maggie deposited $50 in a savings account earning 12% interest, compounded annually. How much will she have in 5 years?

• $30

• $38.12

• $80

• $88.12