Financial Lit. :Simple & Compound Interest, Terms of Loan

What is the formula for simple interest?

• A=P(1+r)^t
• I=Prt
• I=P(1+r)t
• A=Prt

Tags

CCSS.HSA.SSE.A.1

CCSS.HSA.CED.A.2

Find the compound interest:
Principal: $1735
Interest Rate: 0.8%
Time: 1 year

• $1,388
• $138.80
• $13.88
• None of the answers are correct.

Tags

CCSS.HSF.BF.A.2

Find the simple interest:
Principal: $6,000
Interest Rate: 5%
Time: 6 months

• $150
• $1,800
• $1,500
• $15,000

Tags

CCSS.7.RP.A.2

CCSS.7.RP.A.3

Jose invests $200 into an account at a rate 2%. He plans on keeping the account open for 15 years. If it is a compound interest account, about how much money will he have in the account after 15 years?

• $60

• $70

• $260

• $270

Tags

CCSS.HSF-LE.A.1C

Jacob invested $400 into a savings account that earned simple interest at a rate of 1.25%. He plans to keep it in the account for the next 10 years. How much interest would he gain in the account after 10 years?

• $50

• $450

• $500

• $5,000

Tags

CCSS.HSF.BF.A.2

Megan is currently in 8^th grade and wants to begin saving money for college. She wants to invest $2000 in a simple interest account that pays at a rate of 3.5%. How many years will she have to save for the account to gain $490 in simple interest?

• 5 years

• 6 years

• 7 years

• 8 years

Tags

CCSS.6.EE.B.7

A simple interest account earns $75 at a rate of 1.5% over the course of 5 years. What was the principal amount on the account?

• $5

• $56

• $100

• $1,000

Tags

CCSS.6.EE.B.7

How much more interest is earned if $8,500 is invested into an account paying compound interest of 4% for 6 years compared to investing the $8,500 into an account paying simple interest of 4.5% for 5 years?

• $1,912.50

• $2,255.21

• $8,842.71

• $342.71

Tags

CCSS.HSF.LE.A.2

CCSS.HSF.LE.A.1

CCSS.HSA.CED.A.1

CCSS.HSF.BF.A.1

Mr. Flores opened an account with a deposit of $5,000. The account earned annual simple interest. He did not make any additional deposits or withdrawals.

At the end of 4 years, the balance of the account was $6,500.

What is the annual interest rate on this account?

• 5.8%

• 7.5%

• 3.3%

• 1.9%

Tags

CCSS.7.EE.B.4A

Logan took out $23,400 in student loans to attend college at a compound interest rate of 5%. He deferred (didn't make payments) his loan for two years. What will be his loan balance at the end of the two-year deferment?

• $25,798.50

• $24,570.00

• $25,740.00

• $23,400.00

Tags

CCSS.HSF.LE.A.2

CCSS.HSF.LE.A.1