Simple Interest and Compound Interest Quiz

What does the "I" in the simple interest formula stand for? $I=P\cdot R\cdot T$  

• Principal

• Interest

• Rate

• Time

What does the "R" in the simple interest formula stand for? $I=P\cdot R\cdot T$  

• Principal

• Interest

• Rate

• Time

Maria borrowed $3,000 at a simple interest rate of 4% per year. What is the final balance after 4 years?

*Hint: Use the simple interest formula.

• $480

• $3,480

• $4,800

• $7,800

Find the ending balance:

$35,600 at 9% for 2 years.

*Hint: Use the simple interest formula.

• $42,296.39

• $42,002.27

• $42,008.00

• $38,804.00

Find the ending balance:

$1,400 at 4% for 5 years.

*Hint: Use the simple interest formula.

• $1,456

• $1,680

• $280

• $1,703.31

Find the interest:

$26,500 at 12% for 7 years.

*Hint: Use the simple interest formula.

• $22,260

• $2,226,000

• $2,252,500

• $48,760

Find the interest:

$1,350 at 4% for 3 years.

*Hint: Use the simple interest formula.

• $1,512

• $16,200

• $17,550

• $162

Emilio borrows $1200 from a bank with 8% simple interest per year. How much will he have to pay back total in 2 years?

*Hint: Use the simple interest formula.

• $150

• $192

• $1350

• $1392

Principal = $500

Interest rate =5%

Time = 5 years

What is the interest earned?

*Hint: Use the simple interest formula.

• 95

• 105

• 125

• 135

Emily’s parents put $1,500 in her bank account for college tuition. At an interest rate of 8.25% compounded semi-annually,what will be the balance after 18 years?

*Hint: Use the compound interest formula.

• $6,273.50

• $6,314.08

• $6,385.72

• $6,427.94