U10. PA. Official Review

What is the formula for compound interest?

• A=P(1+r)^t

• I=Prt

• I=P(1+r)t

• A=Prt

Write the percent as a decimal. 
4.3%

Find the simple interest earned for principal of $2,000 at and 8% rate for 5 years.

• $160

• $800

• $80,000

• $8,000

• $26.10

• $78.30

• $13.05

• $91.35

Big G's TVs took a loan for $1,845 with an annual simple interest rate of 6.7%. They could choose to pay off the loan in either 12 months or 18 months. How much money could they save by choosing to pay off the loan in 12 months?

 

Hint: Remember to convert months to years for this one. (example in our notes is very similar)

• $61.81

• $185.42

• $123.62

• $18.45

Which investment plan is used to save a small amount of money regularly for college?

• 529

• 403(b)

• IRA

• Mortgage

Adrian invested $2,000 in an account for his daughter’s college education. The account pays 8% interest, compounded yearly. How much money will Mr. Turner have in the account after 3 years, to the nearest dollar?

In 2006 a group of investors invested $300,000 at 4.8% simple interest for 1 year. In 2008 interest rates climbed to 5.9%. How much more money would the investors have made by investing the same amount of money at the 2008 interest rate?

• $3,300

• $17,700

• $14,400

• $30,000

The cost of tuition at the college that Jadyn wants to attend is $18,500 per year. His family will pay 60% of the tuition cost each year. He has 3 years to save enough money to attend his first year of college. 

 

What is the minimum amount that he should save each month in order to have enough money to attend his first year of college? 

• $205.56

• $141.67

• $7,400

• $283.35