Simple and Compound Quiz

What is the formula for simple interest?

• I = P * R * N

• I = P / R * N

• I = P * R

• I = P + R + T

Tags

CCSS.7.RP.A.3

Calculate the simple interest for a principal amount of $5000, an interest rate of 3%, and a time period of 2 years.

• 300

• 200

• 400

• 100

Tags

CCSS.7.RP.A.3

What is the formula for compound interest?

• A = P(1 - r/n)^(nt)

• A = P(1 + r)^(nt)

• A = P(1 + r/n)^(nt) + C

• A = P(1 + r/n)^(nt)

Calculate the compound interest for a principal amount of $10000, an interest rate of 5%, and a time period of 3 years (compounded annually).

• $12500

• $15000

• $10000

• $11576.25

Tags

CCSS.HSF.BF.A.2

What is the difference between simple interest and compound interest?

• Simple interest is calculated annually, while compound interest is calculated monthly.

• The difference between simple interest and compound interest is that simple interest is calculated only on the principal amount, while compound interest is calculated on both the principal amount and the accumulated interest.

• Simple interest is only applicable to loans, while compound interest is applicable to both loans and investments.

• Simple interest is always higher than compound interest.

Tags

CCSS.7.RP.A.3

If you invest $2000 at a simple interest rate of 4% per year, how much interest will you earn after 5 years?

• $200

• $400

• $300

• $100

Tags

CCSS.7.RP.A.3

If you invest $5000 at a compound interest rate of 6% per year, how much total will you earn after 3 years (compounded annually)?

• $1000.50

• $5955.08

• $955.60

• $2000.90

Tags

CCSS.HSF.BF.A.2

Calculate the amount after compound interest for a principal amount of $8000, an interest rate of 7%, and a time period of 4 years (compounded annually).

• 10500.00

• 10486.36

• 10486.37

• 10300.00