STAAR Review 10 - Simple & Compound Interest

1) Gabby invested $100 into a savings account that earned simple interest at a rate of 1.5%.  She plans to keep the money in the account for the next ten years.  How much would she have in the account at the end of ten years?

• $15
• $115       
• $116.05
• $1,500

Tags

CCSS.7.RP.A.3

2) 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

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

5)  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.7.RP.A.3

9)  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

The simple interest formula is I=Prt.  The P represents the principle.  The principle is ___________________. 

• the amount of money borrowed or deposited
• the amount taxed
• the percent interest for this year
• the amount the bank owes you for being a customer at their bank

Tags

CCSS.7.RP.A.3

What is the formula for simple interest?

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

Tags

CCSS.8.EE.C.7B

I = Prt where r represents the rate.  Rates must be converted into ____ before multiplying.

• fractions
• mixed numbers
• decimals
• integers

Tags

CCSS.7.RP.A.3

What does P stand for in I = Prt ?

• percent
• partner
• percent change
• principal

Tags

CCSS.6.EE.B.6

Bruno was given $2000 when he turned 3 years old.  His parents invested it at a 2% interest rate compounded annually.  No deposits or withdrawls were made.  Which expression can be used to determine how much money Bruno had in the account when he turned 16? 

• 2000(1+0.02)¹³
• 2000(1-0.02)¹³
• 2000(1+0.02)¹⁶
• 2000(1-0.02)¹⁶

Tags

CCSS.HSF.BF.A.2