Simple vs Compound Interest

A bank is offering 2.5% simple interest on a savings account.  If you deposit $5,000, how much interest will you earn in three years?

• $5375
• $375
• $37500
• $42500

Tags

CCSS.7.RP.A.3

A bank is offering 2.5% simple interest on a savings account.  If you deposit $5,000, what will be the total amount of money in your savings account after three years?

• $375
• $42500
• $5375
• $37500

Tags

CCSS.7.RP.A.3

Sarah borrowed $18,000 for 4 years at an annual simple interest rate of 7%.  How much interest will she pay at the end of the 4 years?

• $5040
• $23040
• $504000
• $18000

Tags

CCSS.7.RP.A.3

Sarah borrowed $18,000 for 4 years at an annual simple interest rate of 7%.  What is the total amount she will repay for the car loan?

• $504000
• $5040
• $23040
• $18000

Tags

CCSS.7.RP.A.3

John deposited $2,000 into a savings account.  How much will John have in his account after 7 months at a yearly simple interest rate of 3¼%?

• $2455
• $455
• $37.92
• $2037.92

Tags

CCSS.7.RP.A.3