Simple and Compound Interest

• 1462.5

• 2641

• 146

• 14

Which is the formula for Compound Interest?

Which is the formula for Simple Interest?

Use simple interest to find the ending balance. (Total = P + I)

P= $34,100 R= 4% T= 3 years

• $4,092

• $5030

• $38,192

• $41,100

You want to borrow $1,240 for 2 years at an interest of 8% compounded annually. How much will you pay back by taking out the loan?

• $4464

• $1,186.30

• $1,446.34

• $2,215.68

interest is _________

• extra money paid for borrowing

• interesting

• Flocabulary songs

• time times rate

The simple interest formula is I=Prt.  What does the t represent?

• Principle
• Interest
• Time, in hours
• Time, in years

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.

Question #1

If you wish to calculate the amount of interest earned on an investment with a rate of 6.17%, what number will you plug into your equation for the rate?

A. 0.00617

B. 0.0617

C. 0.617

D. 6.17

• A

• B

• C

• D

Question #3

Nicole deposits $2,136 in a savings account paying 5.36% interest. To the nearest dollar, how much interest does Nicole have in total after nine years?

A. $213

B. $1,030

C. $1,272

D. $3,166

• A

• B

• C

• D