Simple and Compound Interest

What type of interest is being described?

Andrew deposits $300 into an account that earns 2% interest each year. After the first year, Andrew has $306 in the account. After the second year, Andrew has $312 in the account, and after the third year, Andrew has $318 in the account.

• Simple Interest

• Compound Interest

• None of the above

Tags

CCSS.HSF.BF.A.2

What type of interest is being described?

Marilyn deposits $600 in an account that earns 1.5% interest each year. After the first year, Marilyn has $609 in the account. After the second year, Marilyn has $618.14 in the account, and after the third year, Marilyn has $627.41 in the account.

• Simple interest

• Compound interest

• None of the above

Tags

CCSS.HSF.BF.A.2

Sherwin deposits $500 into a simple interest account. The interest rate for the account is 3.75%. The function P(t)= 500 + 18.75t represents the balance in the account as a function of time.

Determine the balance amount after 3 years.

• $1056.25

• $518.75

• $556.25

• $536.75

Tags

CCSS.HSF-BF.A.1A

Hector deposits $400 into a simple interest account. The interest rate for the account is 5.25%. The function P(t) = 400 + 21t represents the balance in the account as a function of time.

Determine the number of years it will take for the account balance to reach $610.

• 4

• 6

• 10

• 20

Ronna deposits $500 into a compound interest account. The interest rate for the account is 4%.

Write a function to represent this situation.

• P(t) = 500 * 1.04^t

• P(t) = 500 * (1+0.04t)

• P(t) = 500 + 1.04^t

Tags

CCSS.HSF-BF.A.1A

Cisco deposits $500 into a compound interest account. The interest rate for the account is 3.25%. The function P(t) = 500 * 1.0325t represents the balance in the account as a function of time.

Determine the account balance after 15 years.

• $505.67

• $703.34

• $1023.04

• $807.83

Julia has $2300 to deposit into an account. The interest rate available for the account is 3.75%.

What is the formula for compound interest in this situation?

• P(t) = 2300 + 86.25t

• P(t) = 2300 * 1.0375t

• P(t) = 2300 + 86.25^t