Unit 10 Review

Starting money = $350.

Simple Interest rate = 2.5%

TIme = 3 years.

How much interest?

• $7.50

• $26.25

• $87.5

• $262.50

Tuition for one year of college at Benton University is about $23,000. Barney will save money each month for the next four years. His parents will give him $4,500 for his first year. Which plan shows the minimum amount of money that Barney will have to save each month to pay for his first year.

• Save $1541.67 per month for the next 4 years

• Save $385.42 per month for the next 4 years

• Save $479.17 per month for the next 4 years

• Save $358.42 per month for the next 4 years

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

• $150
• $192
• $1350
• $1392

Rachel invested $2,700 in a savings account earning 7% simple interest. What would be the total balance in dollars and cents in Rachel's account at the end of 2 years?

• $3,078

• $378

• $40,500

• $4536

The Henley's took out a loan for $195,000 to purchase a home. At a 4.3% interest rate compounded annually,how much interest will they have paid after 30 years?

• $412,749.79

• $429,305.61

• $471,259.24

• $494,546.99

You deposit $2,500 in a savings account.

What is the difference in the amount of interest that will be paid between simple and compound interest?

Option A) Interest rate of 8.25% simple interest for 2 years

Option B) Interest rate of 6.5% compounded annually for 2 years

• $769.40

• $335.56

• $76.94

• $68.52

Shelley placed $70,000 in an account that earns 0.4% interest compounded annually. How much interest will you have earned in 20 years?

• $5,818

• $13,378.62

• $75,818

• $83,378.62

The total tuition to attend a state university is $9,600 for the first year. Lisa's parents will pay for 75% of her tuition. Lisa has 4 years to save enough money to attend her first year of college. What is the minimum amount of money she should save every month in order to reach her goal?

• $200

• $150

• $50

• $75

Sergio invested $3800 into each of two savings accounts. Account I earns 3.5% annual simple interest and Account II earns 3.5% interest compounded annually. What is the sum of the balances of Account I and Account II at the end of 5 years?

• $8,678.21

• $4,513.21

• $5,178.21

• $8,978.21

How much more money is earned on $3,000 invested at 4% interest compounded annually for 20 years than $3,000 invested at simple interest rate of 4% for 20 years?

• $4173.37

• $1173.37

• $417.34

• $117.34