Simple & Compound Interest Review

Don’s father started a college fund on Don’s 11th birthday. He deposited $3,500 into a CD (certificate of deposit) that yields an interest rate of 0.32% compounded annually. How much money will the CD be worth when Don turns 25 years old?

• $280

• $3,791.02

• $3,625.19

• $3,660.10

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Moe’s mother is planning to borrow $20,000 to remodel the restaurant she owns. She contacted several loan companies, and she is comparing two different options.

• Company 1 offers an interest rate of 6.25%.

• Company 2 offers an interest rate of 9.5%.

Both loan options involve simple interest and must be repaid in exactly 8 years. How much more will Moe’s mother pay in interest if she chooses to borrow the money from Company 2?

• $27,000

• $52,000

• $2,700

• $5,200

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CCSS.7.RP.A.3

Taryn’s mother is setting up a college fund account for Taryn. Taryn is 8 years old. Taryn’s mother will deposit $8,000 in a CD that earns 4% simple interest annually. How much interest will the college account earn over a 12-year period?

• $1,280

• $3,569

• $3,840

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Terry’s mother is setting up a college fund account for Terry. Terry is 6 years old. Terry’s mother will deposit $9,000 in a CD that earns 3% simple interest annually. How much interest will the college account earn over a 7-year period?

• $1,890

• $1,620

• $270

• $10,890

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Brianna’s mother is planning to borrow $35,000 to remodel the restaurant she owns. She contacted several loan companies, and she is comparing two different options.

• Company 1 offers an interest rate of 4.25%.

• Company 2 offers an interest rate of 5.5%.

Both loan options involve simple interest and must be repaid in exactly 9 years. How much more will Brianna’s mother pay in interest if she chooses to borrow the money from Company 2?

• $3,937.50

• $4,287.50

• $17,325

• $17,675

Tags

CCSS.7.RP.A.3

Mindy’s mother is planning to borrow $15,000 to remodel the restaurant she owns. She contacted several loan companies, and she is comparing two different options.

• Company 1 offers an interest rate of 2.25%.

• Company 2 offers an interest rate of 4.5%.

Both loan options involve simple interest and must be repaid in exactly 3 years. How much more will Mindy’s mother pay in interest if she chooses to borrow the money from Company 2?

• $19,237.50

• $8,1000

• $1,012.50

• $101.25

Tags

CCSS.7.RP.A.3

Tania’s mother is setting up a college fund account for Tania. Tania is 7 years old. Tania’s mother will deposit $5,400 in a CD that earns 6.9% simple interest annually. How much interest will the college account earn over a 12-year period?

• $12,026.10

• $2,608.30

• $1,863.00

• $4,471.30

Tags

CCSS.7.RP.A.3

Damon’s father started a college fund on Damon’s 9th birthday. He deposited $2,500 into a CD (certificate of deposit) that yields an interest rate of 0.53% compounded annually. How much money will the CD be worth when Damon turns 17 years old?

• $2,621.81

• $2,735.06

• $2,607.99

• $225.25

Tags

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Sindy’s mother is planning to borrow $13,500 to remodel the restaurant she owns. She contacted several loan companies, and she is comparing two different options.

• Company 1 offers an interest rate of 1.25%.

• Company 2 offers an interest rate of 4.5%.

Both loan options involve simple interest and must be repaid in exactly 3 years. How much more will Mindy’s mother pay in interest if she chooses to borrow the money from Company 2?

• $1,822.50

• $506.25

• $1,316.25

Tags

CCSS.7.RP.A.3

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

• Principle
• Interest
• Time
• Percent Rate

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