MMA Simple & Compound Interest Quiz

You invest $5,000 into a savings account. The savings account earns 6% simple interest. How much interest will the account earn in 5 years?

• $150

• $1,500

• $15,000

• $15

You invest $5,000 into a savings account. The savings account has a simple interest at 6%. What will the total value of the account be after 5 years?

• $5,150

• $5,015

• $6,500

• $21,000

You invest $8,000 into a bank account with simple interest. 10 years later, the account has earned $3,000 in interest. What interest rate did the bank give you?

• 3.75%

• 26.7%

• .026%

• .0375%

You are saving up to buy your first car. You have $2,000 now, but the car you really want costs $2,500. You’ve found a savings account that will offer you 7% simple interest. How much more money do you need to earn in order to reach your savings goal?

• $2,500

• $500

• $4,500

You are saving up to buy your first car. You have $2,000 now, but the car you really want costs $2,500. You’ve found a savings account that will offer you 7% simple interest. How long will it for your account reach your goal?

• 3.6 years

• 17.9 years

• 2.9 years

• 20 years

A man invests $2,000 in an account that pays 8% interest compounded quarterly. What is the total amount he will have in his account after 10 years?

• $4,416.08

• $2,939,543.14

• $43,449.04

• $4,317.85

Jane deposits $450 into a savings account that generates 10% interest compounded monthly. How much money will be in the account after 12 years?

• $1,486.64

• $1,412.29

• $507.35

You have decided to start a savings account with $200 given to you as a birthday gift and you are trying to decide where to invest it. Berkner Bank is offering simple interest for 4 years at 5%, while Rams Bank of Richardson is offering 4.75%, compounded quarterly over 4 years. Which is the better deal?

• Rams Bank of Richardson

• Berkner Bank

In the formula for simple interest, what does the I stand for?

 $I=P\times r\times t$  

• Interest

• Internet

• Interview

• Interception

In the formula for simple interest, what does the P stand for?

 $I=P\times r\times t$  

• Principal

• Primary

• Property

• Printer Jam