Simple and Compound Interest

Anne deposited $500 in an

account that earns 6% simple annual interest.

Shelly deposited $500 in an account that earns 6% annual interest

compounded annually. They leave the

money in the account for 4 years. Which

statement is true about the two investments after 4 years?

• Shelly will have $131.24 more in her account

  than Anne has in her account.

• They will have the same

  amount in their accounts.

• Shelly will have $11.24 more

  in her account than Anne has in her account.

• Anne will have $11.24 more in

  her account than Shelly has in her account.

When calculating

interest, how do you write the percent?

• a fraction

• a decimal

• a round number

• not enough information

Steve deposited

$5,000 in a savings account that pays 4% interest compounded annually. Which

equation could be used to find the value of the account after 3 years?

• A = 5,000(1 + 4)³

• A = 5,000(1 + 0.04)³

• A = 5,000(1 + 0.4) x 3

• A = 5,000(0.04)³

Heather

invested $8,000 in a 4-year Certificate of Deposit (CD) that pays 4.1% interest

compounded annually. What is the value of the CD at the end

of the 4 years?

• $9,394.92

• $9,312.00

• $1394.00

• $1312.00

David

invests $10,000 in a savings account that pays 3.5% simple interest. If David makes no withdrawals or deposits to the account, how much total will be in the

account after 7 years.

• $2,450

• $11,750

• $12,450

• Not here

Tags

CCSS.7.RP.A.3

Paul deposits $4000 in a bank which pays a compound interest rate of 4% per year. How much will he have in 5 years.

• $4866.61

• $5628.40

• $6077.53

• $6326.60

If Jarvis borrow $675 for six years at a simple interest rate of 10% , how much interest will he pay ?

• $504

• $1048

• $405

• $1055

Tags

CCSS.7.RP.A.3

Natasha Romanoff took a car loan of $35000 at a simple interest of 3.8% per annum over 4 years. Calculate the simple interest she has to pay .

• $5330

• $40320

• $320

• $5320

Tags

CCSS.7.RP.A.3

Captain America invests $5000 in a savings account which pays compound interest at the rate of 2.5% per year. Calculate the interest in 6 years correct to the nearest dollars.

• $5798.46

• $750

• $798.46

• $678.46

Tags

CCSS.HSF.BF.A.2

Mr Tan deposited $5000 into the Bank of OCBC .How much interest will he get at the end of 2 years with a simple interest of 2% per year.

• $5300

• $200

• $5200

• $300

Tags

CCSS.HSF.BF.A.2