Unit 6 test- Business math ( Interest)

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 taxed
• the amount the bank owes you for being a customer at their bank

Tags

CCSS.7.RP.A.3

Emilio borrows $1500 from a bank with 8% simple interest per year. How much will he have to pay back total in 2 years?

• $150

• $120

• $1350

• $1320

Change 6.752% to a decimal.

• 67.52

• .06752

• 6752

• .6752

Bruno was given $2000 when he turned 3 years old. His parents invested it at a 2% interest rate compounded semi annually. No deposits or withdrawls 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)/2)^2*13

• 2000(1-0.02)²⁶

Find the total amount in the account if the interest is compounded annually.

$2750 at 8% for 3 years

• $66,000

• $3,410

• $6,600

• $660

The compound interest formula is:
A = P(1 + r)^t

What does the A represent?

• The amount of interest earned.
• The amount of time that has passed.
• The total amount of money after a certain amount of time.
• The amount required to invest.

The simple interest formula is I=Prt.  What does the t represent?

• Principle
• Interest
• Time, in hours
• Time, in years

Which is the

compound interest formula compounded annually?

• A = P(2+r)^t

• I= Prt

• A² + B² = C²

• A = P(1+r)^t

Jerry borrowed $4,000 for 5 years at 6.45 % simple interest rate. How much interest is that?

• $800

• $12,900

• $1,290

• $1,500

If you are calculating the simple interest and you are given the time in months. How can you find the time in years?

• divide 12 by the months

• divide the months by 12

• multiply 12 times the months

• change the months to a decimal

Tags

CCSS.7.RP.A.3