Simple Interest

Marcus plans to deposit $20,000 into a savings account.

He has two options. Option 1: Bedford Bank offers a rate of 4% simple interest for five years. How much interest is earned?

• $2460

• $4000

• $5204

• $4094

Tags

CCSS.7.RP.A.3

Marcus plans to deposit $20,000 into a savings account.

He has two options. Option 2: Slick Bank offers a rate of 20% simple interest for one year. How much interest is earned?

• $5680

• $8475

• $3540

• $4000

Tags

CCSS.7.RP.A.3

Marcus plans to deposit $20,000 into a savings account. He has two options. Which option earns Marcus more interest?

• Option 1: Bedford Bank

• Option 2: Slick Bank

• They earn Marcus the same amount

How much simple interest does $2,560 earn in 17 months at a rate of 5.125%?

• $142.81

• $201.24

• $185.87

• $98.76

Tags

CCSS.7.RP.A.3

What interest rate is needed for $9,500 to earn $900 in 19 months?

• 5.98%

• 4.65%

• 6.04%

• 3.72%

Tags

CCSS.7.RP.A.3

How much principal would you have to deposit to earn $700 simple interest in 1.5 years at a rate of 4%?

• $14,988.34

• $11,666.67

• $12,548.22

• $8,562.89

Tags

CCSS.7.RP.A.3

A couple is planning a savings account for a newborn baby. They start with $3,450 received in newborn baby gifts. If no deposits or withdrawals are made, what is the balance of the account if it earns simple interest at 5% interest for 18 years?

• $4,165

• $7,985

• $6,480

• $6,555

Tags

CCSS.7.RP.A.3

Ron estimates that it will cost $400,000 to send his daughter to a private college in 18 years. He currently has $90,000 to deposit in an account. What simple interest rate must his account have to reach a balance of $400,000 in 18 years?

• 32.1%

• 11.4%

• 19.1%

• 9.6%

Tags

CCSS.7.RP.A.3

Dillon has a bank account that pays 3.2% simple interest. His balance is $1,766. How long will it take for the amount in the account to grow to $2,000? Round to the nearest year.

• 7 years

• 5 years

• 12 years

• 4 years

Tags

CCSS.7.RP.A.3

How long will it take $5,000 to double in an account that pays 5.6% simple interest? Round to the nearest year.

• 15 years

• 18 years

• 22 years

• 14 years

Tags

CCSS.7.RP.A.3