Simple and Compound Interest

Steve deposited $5,000 in a savings account that pays 4% interest compounded annually. Which equation could be used to find the value of the account after 3 years?

• A = 5,000(1 + 4)³

• A = 5,000(1 + 0.04)³

• A = 5,000(1 + 0.4) x 3

• A = 5,000(0.04)³

Heather invested $8,000 in a 4-year Certificate of Deposit (CD) that pays 4.1% interest compounded annually. What is the TOTAL BALANCE of the CD at the end of the 4 years?

• $9,394.92

• $9,312.00

• $1394.00

• $1312.00

David invests $10,000 in a savings account that pays 3.5% simple interest. If David makes no withdrawals or deposits to the account, what will be the TOTAL AMOUNT in the account after 7 years?

• $2,450

• $11,750

• $12,450

• Not here

Tags

CCSS.7.RP.A.3

Gilberto invests $10,000 in a savings account that pays 4.75% simple interest. If Gilberto makes no withdrawals or deposits to the account, what will be the ACCOUNT BALANCE after 7 years?

• $3,325

• $13,325

• $13,838.16

• $13,000

Tags

CCSS.7.RP.A.3

Travis invests $25,000 in a savings account that pays 2.75% simple interest. How much INTEREST does he earn in 1 year?

• $787.50

• $625

• $657.50

• $687.50

Tags

CCSS.7.RP.A.3

Audrey deposited $2,800 in a savings account that pays 2.65% interest compounded annually. What is the TOTAL AMOUNT in the account after 7 years?

• $562.57

• $3362.57

• $14,514.15

• $2,569,680

A bank is offering 7% annual compound interest on a savings account.  If you deposit $1,500, how much interest will you earn in three years?

• $1837.56
• $337.56
• $30000
• $31500

Audrey deposited $2,800 in a savings account that pays 2.65% interest compounded annually. What is the TOTAL AMOUNT of the account after 7 years?

• $562.57

• $3362.57

• $14,514.15

• $2,569,680

Karl used his credit card to buy a HD flat-screen TV for $2,600. The credit card company charges 28% compound interest per year. If Karl made no payments for 2 years, what is the TOTAL AMOUNT he would owe the credit card company?

• $5,069.84

• $4,772.18

• $4,259.84

• $4,056.00

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

• $800

• $1,000

• $1,200

• $1,500

Tags

CCSS.7.RP.A.3