Interest Practice

What does the "I" stand for in the formula I=prt?

• Invested Amount

• Interest Rate

• Interest

• Initial Amount

What does the "p" represent in the formula I=prt?

• Product

• Percent

• Interest

• Original Amount Invested/Borrowed

What label does the "r" have in the formula I=prt?

• $

• %

• years

• months

What does the t have to be measured in in the formula I=prt?

• months

• years

• days

• minutes

Reyna inherits $50,000. She puts that money in a bank account that earns 8.5% simple interest, and doesn't touch the account for 42 months. How munch interest will Reyna earn?

• $14,875

• $178,500

• $42,500

• $64,875

How much simple interest is earned over 15 years on an investment of $7,000 with an annual interest rate of 9.25%?

• $9,712.50

• $647.50

• $16,712.50

• $7,043.17

Christopher and Jennifer are establishing a fund for their son's college education. What lump sum must they deposit in an account that gives 8% annual interest rate, compounded monthly, in order for them to have $60,000 in the fund at the end of 10 years?

• $28,331.41

• $31,607.41

• $29,351.41

• $27,031.41

Christopher and Jennifer are establishing a fund for their son's college education. What lump sum must they deposit in an account that gives 8% annual interest rate, compounded monthly, in order for them to have $60,000 in the fund at the end of 10 years?

• $28,331.41

• $31,607.41

• $29,351.41

• $27,031.41

Find the accumulated value of an investment of $7000 at 8% compounded continuously for 3 years. Use  

• $8998.74

• $8898.74

• $8817.98

• $8680.00

Julia invested $1000 for college in an account earning 5% compounded monthly. When she checked the account after 4 years, how much money did she find in the account?

• $1220.90

• $563.24

• $1215.51

• $3200.12