8.12D Practice (9/30/2022)

Mrs. Adams deposited $12,000 into an account that earns an annual simple interest rate of 3.25%. She makes no other deposits or withdrawals.

How much interest will Mrs. Adams have earned at the end of 8 years?

• $31,200.00

• $3,498.93

• $390.00

• $3,120.00

Tania’s mother is setting up a college fund account for Tania. Tania is 6 years old. Tania’s mother will deposit $5,000 in a CD with an annual interest rate of 3% that compounds annually. How much interest will the college account earn over a 10-year period?

Susie wants to deposit $6,000 into a savings account and plans to leave her money in the account for 10 years. The bank offers two types of savings accounts.

Account 1: offers 4.5% simple interest

Account 2: offers 4% interest compounded annually

Which statement about the savings accounts is true?

• Susie should invest her money in Account 1 because the account will earn $300.00 more in interest than Account 2 after 10 years.

• Susie should invest her money in Account 1 because the account will earn $436.35 more in interest than Account 2 after 10 years.

• Susie should invest her money in Account 2 because the account will earn $617.82 more in interest than Account 1 after 10 years.

• Susie should invest her money in Account 2 because the account will earn $181.47 more in interest than Account 1 after 10 years.

Over two years, how much more will a savings account with a simple interest rate of 4.2% yield in earnings than a savings account with a simple interest rate of 3.5% if the original balance of both accounts is $2,200?

• $15.40

• $30.80

• $3,080

• $31.98

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 will be in the account after 7 years?

• $2,450

• $11,750

• $12,450

• Not Here

An investment of $4,000 earns 2% interest compounded annually. What will be the value of the investment in 7 years?

• $4594.74

• $594.74

• $4560.00

• Not Here

How do you think you understand the topic of Simple and Compound Interest?

• Bad. I need help.

• I understand both Simple and Compound Interest formulas but need practice on the "Solving For" step.

• Amazing! I'm a pro without missing a step!!!