Simple and Compound Interest

Initial amount invested or borrowed

• Principal

• Deposit

• Loan

• Interest

Tags

CCSS.7.RP.A.3

The amount paid for the use of money

• Deposit

• Interest

• Principal

• Withdrawal

Tags

CCSS.7.RP.A.3

Interest paid on the initial principal

• Compound Interest

• Loan

• Simple Interest

• Principal

Tags

CCSS.8.EE.C.7B

Interest paid on both the principal and interest earned

• Compound Interest

• Simple Interest

• Principal

• Deposit

Ms. Dunaway borrowed $250,000 from Ms. Martinez to buy a helicopter. Ms. Martinez charged a simple interest rate of 2% over 5 years. What was the total amount of money Ms. Dunaway had to pay Ms. Martinez at the end of the 5 years?

• $275,000

• $25,000

• $2,500,000

• $300,000

Tags

CCSS.7.RP.A.3

Ghostbusters earn $1,200 over the summer zapping ghosts. They invest in an account that has compound interest. The rate is 4%. How much money will they have after 3 years?

• $149.84

• $1,440.00

• $1,349.84

• $14,400.00

Layne deposits $500 into each of two savings accounts. Account 1 earns 5% annual simple interest, and Account 2 earns 5% interest compounded annually. If she does not make any additional deposits or withdrawals, what is the SUM OF THE BALANCES at the end of 3 years?

• $653.81

• $1,153.81

• $1,725.00

• $2,150

Which of the following would created the biggest growth in an account?

• deposits

• interest

• deposits and interest

• none of these

Tags

CCSS.3.OA.D.9

Simple Interest:

I=$75

p=$500

t=5 years

Find the rate

• 3%

• 30%

• 0.03%

• .3%

Tags

CCSS.8.EE.C.7B

Michael opened an account earning simple interest with a deposit of $7,000. He did not make any additional deposits or withdrawals, and at the end of 2 years, the balance of the account was $7,630. What was the annual interest rate on this account?

• 3.3%

• 2.2%

• 1.8%

• 4.5%

Tags

CCSS.7.RP.A.3