Quiz Compound and Simple Interest

If $1,000 is invested at 16% interest, compounded annually, for five years, what is the ending balance?

• $1,225,54

• $2,100.34

• $22,255.40

• $225.54

Jerry borrowed $4,000 for 5 years at 6% simple interest rate. How much interest is that?

• $800

• $1,000

• $1,200

• $1,500

Brian is buying a car and he has two options.
Option 1: $14000      5% interest compounded annually for 5 years
Option 2: $15000      3% interest compounded annually for 6 years
Which statement is true? 

• Option 1 is better because the total price is about $43 cheaper than option 2
• option 2 is better because it is about $43 cheaper than option 1
• option 1 is better  because it is about $200 cheaper than option 2
• option 2 is better because it is about $200 cheaper than option 1

Emily would like to buy some new furniture for her home. She decides to buy the furniture on credit with 9.5% interest compounded quarterly. If she spent $7,400, how much total will she have paid after 8 years.

• $15,415.94
• $15,683.28
• $15,927.56
• $16,109.05

Principal: $5000
Interest Rate: 3.75%
Time: 25 years
Compounded Monthly
State the future account balance.

• $12712.31
• $12,749.30
• $12,657.59
• $12550.84