8.12D Simple & Compound Interest

Interest that is calculated once per period

on the principal and not on any interest

• Compound interest

• Simple interest

Interest that is paid on both the principal and

also on any interest from past years

• Compound interest

• Simple interest

Tags

CCSS.HSF.BF.A.2

When solving for simple interest, which of the following formulas do we use?

• $A=P(1+r)^t$

• 
  

  $I=\Pr t$

An employee put $5000 in a retirement account that offers 9% interest compounded annually. The employee makes no additional deposits or withdrawals. Which amount is closes to the interest the employee will have earned at the end of 5 years?

• $229.09

• $450

• $2,250

• $2,693.12

Tags

CCSS.HSF-LE.A.1C

Mr.Tom borrowed $2000 from a bank. The bank charges a simple interest of 7% per year. Calculate the interest that he has to pay at the end of 3 years.

• $420

• $400

• $600

• $250

Tags

CCSS.7.RP.A.3

^{If Jarvis borrow $675 for six years at a simple interest rate of 10% , how much interest will he pay ?}

• $504

• $405

• $1,000

• None of the above

Tags

CCSS.7.RP.A.3

Jim has $30 in a savings account. The interest rate is 5%, compounded annually.

To the nearest cent, how much interest will he earn in 2 years?

Tags

CCSS.HSF.BF.A.2

Cameron deposited $5 in a savings account earning 5% interest, compounded annually.

To the nearest cent, how much will he have in 2 years?

• $5.51

• $10

• $5

• $0

Abby has $40 in her savings account. The simple interest rate is 5% per year. How much interest will she earn in 1 year?

• $5

• $2

• $40

• No interest will be earned

Tags

CCSS.7.RP.A.3

Zach has $80 in his savings account. The simple interest rate is 5% per year. How much interest will she earn in 2 year?

• $8

• $4

• $80

• No interest earned

Tags

CCSS.7.RP.A.3