Compare Simple & Compound Interest

Jamar deposited $200 into a savings account. The account earns 2.5% annual compound interest. If Jamar makes no additional deposits or withdrawals, how much interest will he have earned at the end of 20 years?

• $300

• $100

• $127.72

• $327.72

John deposits $5,000 into each savings account.

- Savings Account 1 earns 3.5% simple interest

-Savings account 2 earns 3.5% compound interest

John does not make any additional deposits or withdrawals. What is the sum of the balances of both savings accounts at the end of 5 years?

• $11,813.40

• $5,938.43

• $5,875.00

• $11,750.00

Jackie invested $17,000 in an account that pays 3.8% annual compound interest. What will be the total balance of Jackie's investment at the end of 6 years?

• $4,263.40

• $21,263.40

• $3,876.00

• $105,876.00

Julie took out a high-interest emergency loan for $1,500. The loan has an annual compound interest rate of 17%. How much will she owe in interest at the end of 5 years?

• $1788.67

• $1275.00

• $3288.67

• $2775.00

Joey deposited $8,500 into an account that earns 2.1% simple interest. He makes no additional deposits or withdrawals. If he withdraws the money at the end of 5 years, how much simple interest will he have earned?

• $678.25

• $43,392.50

• $89,250.00

• $892.50

Joe invests $3,000, at 4% simple interest for 2 years. Ben invests $3,000 at 4% compounded annually for 2 years. Which statement is true about the balances in the accounts of the two investments?

• Joe and Ben will have the same balance at the end of 2 years.

• Ben's balance will be $4.80 more than Joe's balance.

• Ben's balance will be $5.80 more than Joe's balance

• Ben's balance will be $4.80 less than Joe's balance.

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?

• 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.

Kelly deposits $600 into a new savings account that pays 4% simple interest annually. Oscar deposits $600 into a new savings account that pays 4% interest compounded annually. If both Kelly and Oscar leave their $600 deposits in their accounts for 3 years, how much more will Oscar's deposit earn in interest than Kelly's deposit?

• $1.96

• $2.92

• $50.92

• $74.92

Carly deposited $800 in an account that earns 6% compounded annually. Lara deposited $800 in an account that earns 6% simple interest. How much will each girl have in their account at the end of 10 years if they make no withdrawals or deposits?

• Carly: $1432.68 Lara: $1280

• Carly: $1444.89 Lara: $1280

• Carly: $1444.89 Lara: $1320

• Carly: $1432.68 Lara: $1320

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(4%)³