Simple and Compound Interest

The simple interest formula is I=Prt.  What does the t represent?

• Principle
• Interest
• Time, in hours
• Time, in years

Tags

CCSS.8.EE.C.7B

Which is the

compound interest formula?

• A = P(2+r)^t

• I= Prt

• A² + B² = C²

• A = P(1+r)^t

The compound interest formula is:
A = P(1 + r)^t

What does the A represent?

• The amount of interest earned.
• The amount of time that has passed.
• The total amount of money after a certain amount of time.
• The amount required to invest.

Principal = $350.
Interest rate = 2.5%
TIme = 3 years.
How much simple interest?

• $7.50
• $26.25
• $87.5
• $262.50

Tags

CCSS.HSF.BF.A.2

Beyonce went to the mall and saw a massage chair that she would have to take a loan out for $6500 to purchase.  The bank said that she could get a simple interest rate of 8% for 5 years.  What is the total amount that Beyonce will pay for the chair?

• $2600
• $910
• $9100
• $260

Tags

CCSS.HSF.BF.A.2

Bilbo Baggins earned $475 from walking long distances last summer. He deposited this money in an account that pays an interest rate of 3.8% compounded annually. What will be his balance after 2 years?

• $180.50
• $511.79
• $361.00
• $ 36.10

Jimmy Neutron borrows $1200 from a bank with .8% simple interest per year.  How much will he have to pay back total in 2 years?

• $150
• $19.2
• $1219.2
• $1392

Tags

CCSS.HSF.BF.A.2

What is 7.25% converted to a decimal?

• .725
• 0.725
• 0.0725
• 7.25

Mr. Wilkins deposited $2,500 in a new account at his bank.

• The bank pays 6.5% interest compounded annually on this account.

• Mr. Wilkins makes no additional deposits or withdrawals.

Which amount is closest to the balance of the account at the end of 2 years?

• $2835.56

• $2513.56

• $2662.50

• $2825.00

Tags

CCSS.HSF-LE.A.1C

Nicolas has $650 to deposit into two different savings accounts.

Nicolas will deposit $400 into Account I, which earns 3.5% annual simple interest.

He will deposit $250 into Account II, which earns 3% interest compounded annually.

Nicolas will not make any additional deposits or withdrawals. Which amount is closest to the total balance of these two accounts at the end of 2 years?

• $672.13

• $695.00

• $694.25

• $693.23