Simple and Compound Interest

Briana deposits $29,814 into a savings account that earns 11% simple interest per year. To the nearest dollar, how much will she have in two years?

• $6,559

• $36,373

• $36,734

• $6,919

Brian deposits $1000 into a savings account that gives him 6% interest compounded annually. How much money will he have in 8 years?

• $480

• $1,480

• $1,593.85

• $593.85

Which of the following is the formula for simple interest?

• I=prt

• A= P(1+r)^t

What is the formula for compound interest?

• I=prt

• A= P(1+r)^t

Josh deposits $2,500 of his paycheck to a savings account that gives him back 12% simple interest. How much interest will he earn after 4 years.

• $1,200

• $3,700

• $3,933.80

• $1,433.80

Principle: $14,000

Rate: 6%

Years: 9

Given the information, what will be the ending balance using simple interest?

• $480

• $4,480

Given the information, use compound interest to find the closest amount to the ending balance.

Principle: $7,300

Rate: $7%

Time: 3 years

• $8,833

• $8,942

Given the information, use compound interest to find the amount of interest earned.

Principle: $55,000

Rate: 16%

Time: 2 years

• $19,008

• $74,008

Emily saved $1,030 in a savings account using compound interest for 2 years. How much money did she save if they paid her a rate of 4%?

• $84.05

• $1,114.05

• $82.40

• $1,112.40

How much interest did James earn if he saved 35,800 for 3 years at 8.2% simple interest?

• $8806.80

• $44,606.80

• $45,348.70

• $9,548.70