Personal Finance (Simple & Compound Interest)

SIMPLE INTEREST I=Prt

Cosme is saving money. He put $600 in the bank earning 8% simple interest. How much interest will he earn after 6 years?

• $300

• $288

• $600 + $288 = $888

SIMPLE INTEREST I=Prt

Allen borrowed money for college. He borrowed $8,000 with a simple interest rate of 4.5% for 3 years. How much interest will he pay?

• 1,080

• 1,080,000

• 2,000

SIMPLE INTEREST I=PRT

Anthony is saving for a new phone. He put $400 in a savings account earning 12% simple interest. How much interest will he earn after 2 years?

• $96

• $180

• $0

SIMPLE INTEREST I=Prt

Cornelius has $8000 in the bank earning 7% simple interest. How much interst will he have earned when he graduates college in 8 years?

• 890

• 400

• 4480

COMPOUND INTEREST  $A=P\left(1+r\right)^t$  

Ebony is earning 8% compound interest on the $3,000 loan she gave to her friend. How much total money will she get back after 8 years?

• 1920

• 553

• 5552.80

COMPOUND INTEREST  $A=P\left(1+r\right)^t$  
Darwin started a loan business. He gives $10,000 loans with 18% compound interst for 2 years. How much money does each borrower have to pay back in total?

• 11,000

• 13,924

• 3,000

COMPOUND INTEREST    $A=P\ \left(1+r\right)^t$  
Jenny used a loan to buy a new car for $27,000. The bank charges 6% compound interest for 6 years. How much money will she pay the bank in total?

• 38,300.02

• 27,000

• 30,000

COMPOUND INTEREST  $A=P\left(1+r\right)^t$  
Guillermo borrows $20,000 for college. The bank charges compound interest of 2% for 4 years. How much total will he have to pay the bank?

• 21,648.64

• 20,000

• 40,000

MULTI-STEP (Solve then Add)

Diego has $21,000 in the bank earning 3.7% simple interest. How much money will he have after 5 years?

• 22,890

• 24,885

• 21,375

MULTI-STEP (Solve then subtract)

Anahi has $14750 earning 6% compound interest. After 5 years, how much interest will she earn?

• 1000.84

• 5430.20

• 4988.83