Review of simple and compund interest

Caiden earned $475 from mowing lawns last summer.He deposited this money in an account that pays an interest rate of 3.8% compounded annually. What will be his balance after 15 years?

• $827.52                            

• $831.10                

• $839.45                    

• $846.80                  

The Henley's took out a loan for $195,000 to purchase a home. At a 4.3% interest rate compounded annually,how much interest will they  have paid after 30 years?

• $412,749.79    

• $429,305.61            

• $471,259.24

• $494,546.99

Town Bank offers a 2.25% interest rate, while Charter One offers 2.8%. Both banks compound interest annually. If Rob wants to set up a new account with $5,000,how much more money will he earn at Charter One over Town Bank after 25 years?

• $1,183.41                

• $1,209.79            

• $1,251.63        

• $1,324.10              

Tai put $5,200 in a savings account that pays 4.2% simple interest. Each year she withdraws the interest and treats herself to a visit to a spa. How much can she spend each year?

• $2,184.00

• $218.40

• $214.80

• $21.84

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?

​ ​ (a)  

• $12,450
• Not Here
• $2,450
• $11,750

Mr. Diable invested $3,500 in a 7 year CD that pays 4.2% interest compounded annually. How much interest will the CD earn over the 7 years?

• $147.00

• $245.00

• $1,168.12

• $4,668.12

Jacob borrows $500 from Abraham and agrees to have the loan compounded annually for 5 years with an interest rate of 2.5%. How much will the total amount be that Jacob owes?

• $565.70

• $262609.38

• $65.70

• $630.20

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

• Not enough

• $563.24

• $1215.51

• $3200.12

Daniel invests $360 in a bank account that is compounded annually for 8 years with an interest rate of 5.5%. What will be the total amount in the account after the 8 years is over?

• $625.88

• $950.12

• $315.45

• $552.49

Monthly means how many times a year?

• 4 
• 12
• 52
• 365