Simple & Compound Interest Practice

A bank is offering 3% simple interest on a savings account. If you deposit $5,000, how much interest will you earn in 3 years?

• $5,450

• $450

• $4,500

• $45

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CCSS.HSA.CED.A.1

CCSS.HSA.REI.B.3

CCSS.HSA.SSE.A.1

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?

• $5,040

• $23,040

• $50,400

• $504

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CCSS.HSA.CED.A.1

CCSS.HSA.REI.B.3

CCSS.HSA.SSE.A.1

Ann borrowed $8,000 for 2 years at a simple interest rate of 2%.she will pay back the $8,000 as well as the 2% simple interest. How much will she pay back altogether?

• $320

• $3,200

• $8,320

• $8,323.20

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CCSS.HSA.CED.A.1

CCSS.HSA.REI.B.3

A bank is offering 7% annual compound interest on a savings account. If you deposit $1,500, what will be the total amount of money in your savings account after 1 year?

• $105

• $1,605

• $1,717.35

• $300

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CCSS.HSA.CED.A.1

CCSS.HSA.SSE.A.1

CCSS.HSF.BF.A.1

CCSS.HSF.LE.A.1

CCSS.HSF.LE.A.2

When calculating interest, how do you write the percent?

• a fraction

• a decimal

• a whole number

• depends on the problem

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CCSS.5.NBT.A.3

CCSS.5.NBT.B.7

Steve deposited $5,000 in a savings account that pays 4% interest compounded annually. Which formula 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

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CCSS.HSA.SSE.A.1

CCSS.HSF.BF.A.1

CCSS.HSF.LE.A.1

CCSS.HSF.LE.A.2

CCSS.HSF.LE.B.5

Garrison deposited $400 in an account that earns 5% compound interest. How much money will the account have altogether after 2 years?

• $440

• $40

• $41

• $441

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CCSS.HSA.CED.A.1

CCSS.HSA.SSE.A.1

CCSS.HSF.BF.A.1

CCSS.HSF.LE.A.1

CCSS.HSF.LE.A.2

The simple interest formula is I=Prt. The P represents the principle. The principle is ___________________.

• the amount of money borrowed or deposited

• the amount you pay in interest

• the percent interest for the loan

• the amount the bank owes you for being a customer at their bank

Tags

CCSS.HSA.SSE.A.1

If you are calculating the simple interest and you are given the time in months.  How can you find the time in years?

• divide 12 by the months
• multiply 12 times the months
• divide the months by 12
• change the months to a decimal

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CCSS.8.EE.C.7B

I = Prt where r represents the rate.  Rates must be converted into ____ before multiplying.

• fractions
• mixed numbers
• decimals
• integers

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CCSS.6.EE.B.7