Benchmark review Interest (11-9-21) #2

Two customers took out loans from a bank.

*Ricky took out a 6-year loan for $4500 and paid 6.3% simple interest.

*Jessica took out a 8-year loan for $4500 and paid 7.7% simple interest.

What is the difference between the amounts of interest Ricky and Jessica paid for their loans?

• 1701

• 2772

• 4473

• 1071

J3 needs a $15,500 loan in order to buy a truck.

Which loan option would allow him to pay the least amount of interest?

• An 18 -month loan with 2.75% simple interest

• An 30 -month loan with 5.00% simple interest

• An 24 -month loan with 2.25% simple interest

• An 36 -month loan with 5.50% simple interest

Mrs. Booth puts $12,500 into a life insurance policy that pays 4.5% simple annual interest. If no additional investment is made into the policy, how much accumulated interest should the investor expect at the end of 12 years?

• $19,250

• $6750

• $21,198.52

• $67,500

An employee put $8,500.00 in a retirement account that offers 8% interested compounded annually. The employee makes no additional deposits or withdrawals. Which amount is closest to the interest the employee will have earned at the end of 10 years?

• $6800

• $18,350.86

• $9850.86

• $15,300

Mrs. Booth deposited $4,550 in a new account at her bank.

*The bank pays 2.55% interest compounded annually.

*Mrs. Booth makes no additional deposits or withdrawals.

Which amount is closest to the balance of the account at the end of 4 years?

• $464.10

• $5014.10

• $5032.16

• $482.16