Quiz Review : Compounding and Simple Interest

Kennedy won $3,000 from a radio contest. If she puts this money in a bank account that earns 2.9% interest compounded quarterly, how much total will she earn in 10 years?

• $4915.59
• $3933.28
• $2979.81
• $4005.09

Determine the balance in the account if you deposited $4,000 at an interest rate of 3.4% compounded quarterly for three years.

• $4422.03
• $4427.62
• $4428.90
• $4429.51

Jerry borrowed $4,000 for 5 years at 6% simple interest rate. How much interest is that?

• $800
• $1,000
• $1,200
• $1,500

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

• Principle
• Interest
• Time
• Percent Rate

Jack deposited $1,400 in his bank account.  After 3 years, the account earned $294 in interest.  Find the simple interest rate.

• 5%
• 8%
• 7.25%
• 7%

Caiden earned $475 from mowing lawns 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 15 year?

• $827.52
• $831.10
• $839.45
• $846.80

compound means (a)  

• principle added into the interest
• principle subtracted from the inter
• just interest
• Jimi Hendrix is the best guitarist

Captain America invests $5000 in a savings account which pays compound interest at the rate of 2.5% per year. If the interest is compounded annually calculate the total interest in 6 years correct to the nearest dollars.

• $5798.46

• $750

• $798.46

• $678.46

How much interest will Joe pay if he borrows $19,000 for a car at 3% interest for 5 years?

• $2,850

• $21,850

• $19,000

• $38,000

Olivia would like to buy some new furniture for her home. She decides to buy the furniture on credit with 9.5% interest compounded quarterly. If she spent $7,400, how much total will she have paid after 8 years.

• $15,415.94
• $15,683.28
• $15,927.56
• $16,109.05