Test review Simple and Compound Interest

Jeremiah deposits $1500 into each of two savings accounts.

-Account 1 earns 2.5% annual simple interest.

-Account 2 earns 2.5% interest compounded annually.

What is the sum of the balances of Account 1 and Account 2 at the end of 3 years?

• $1727.84

• $3227.84

• $322.78

• $3330.00

Mr. Jenkins deposited $1,250 into an account. He earned 4.25% simple interest on the account. What was the balance, in dollars and cents, in the account at the end of 4 years?

Juan borrowed $27,000 from a bank to purchase a car. If he borrows the money at 4.15% interest compounded annually for 5 years, how much interest will he pay on the car loan?

• $126,160.21

• $6,087.21

• 5,602.50

• $1,120.50

Mr. Bell deposited $2,500 in a new account at the bank. The bank pays 6.5% interest compounded annually. Which amount is closest to the balance of this account at the end of 2 years?

• $2,835.56

• $2,513.00

• $2,662.50

• $2,825.00

An investor puts $2,500.00 into a life insurance policy that pays 8.5% simple annual interest. If no additional investment is made into the policy, how much accumulated interest should the investor expect at the end of 10 years?

• $21.25

• $212.50

• $2,125.00

• $21,250.00

Mr Garcia opened an account with a deposit of $3,000.

-The account earned annual simple interest.

-He did not make any additional deposits or withdrawals. -At the end of 2 years, the account balance was $3,348.

What is the annual interest rate on the account?

• 5.8%

• 1.9%

• 3.3%

• 7.5%

Caden deposited $500 in an account that earns 3% interest compounded annually. How much interest will the account earn after 6 years?

• $90

• $100

• $97.03

• Not here

Jessie will deposit $1,230 in an account that earns 5% simple interest every year. Her sister Melanie will deposit $1,200 in an account that earns 7% interest compounded annually. Which statement about the balances of Jessie and Melanie’s account will be true after 4 years?

• Jessie’s account will have about $126.96 more than Melanie’s account.

• Jessie’s account will have about $96.96 more than Melanie’s account.

• Melanie’s account will have about $126.96 more than Jessie’s account.

• Melanie’s account will have about $96.96 more than Jessie’s account.

An employee puts $5000 in a retirement account that offers 9% interest compounded annually. Which amount is closest to the interest the employee would have earned at the end of 5 years?

• $229.09

• $450

• $2,250

• $2,693.12

Danny invests $10,000 in a simple interest savings account that earns 3.5% interest. If the total in his account at the end of his term is $12,450, how long did he leave the money in the account?

• 4 years

• 5 years

• 6 years

• 7 years