5/22-Simple & Compound Interest & Rule of 72

• rate

• principal

• time

• amount

• rate

• principal

• time

• amount

Caiden deposited $475 in an account that pays a simple interest rate of 3.8%. What will be his balance after 15 years?

• $270.75

• $27.08

• $2,707.50

• $27,075.00

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CCSS.7.RP.A.3

You borrowed $59,000 for 2 years at 11% which was compounded annually. What is the total?

• $13,693.90

• $1,363.90

• $72,693.90

• $73,793.90

You borrowed $1,690 for 5.5 years at an interest of 5.7%. How much is the total you pay?

• $1,690

• $2,292.45

• $1,87.55

• $3,982.45

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CCSS.7.RP.A.3

Krystal has $3000 invested at a 2% interest rate compounded annually. Which expression can be used to determine how much money Krystal had after 16 years?

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CCSS.HSF.BF.A.2

If you wanted to amount of interest an account has earned after being compounded annually. What would you have to do after you found "A" using the formula A=P(1+r)^t ?

• Add A (total amount) plus P (original amount)

• Subtract A (total amount from P (original amount)

• Add P (original amount) plus A (total amount)

• Subtract P (original amount) from A (total amount)

You borrowed $1,690 for 5.5 years simple interest of 5.7% annually.  How much extra (interest) did you pay by taking out the loan?

• $602.45
• $529.82

• $1,87.55
• $3,982.45

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CCSS.HSF.BF.A.2

Chris borrows $450 from Kevin.

Kevin lets Chris choose either a simple interest loan for 10 years with a 3.5% interest rate

OR

a loan compounded annually for 7 years with a 2% interest rate.

Which should Chris choose if he wants the cheaper plan?

• The simple interest plan

• The compound interest plan

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CCSS.HSF.BF.A.2

Carly

deposited $800 in an account that earns 6% compounded annually. Lara deposited

$800 in an account that earns 6% simple interest. How much will each girl have

in their account at the end of 10 years if they make no withdrawals or deposits?

• Carly: $1432.68 Lara: $1280

• Carly: $1444.89 Lara: $1280

• Carly: $1444.89 Lara: $1320

• Carly: $1432.68 Lara: $1320