Simple and Compound Interest - Spicy

The compound interest formula is:

A = P(1 + r)^t

What does the A represent?

Ivan deposits $5,000 into an account that pays simple interest at a rate of 5% per year. How much interest will he be paid in the first 3 years?

What is the principle? ​ (a)  

What is the rate? ​ (b)  

What is the time? ​ (c)  

Maria deposits $300 into an account that pays simple interest at a rate of 6% per year. How much interest will she be paid in the first 5 years?

Jessica borrowed $500 from a bank for 2 years and was charged simple interest. The total interest that she paid on the loan was $70. As a percentage, what was the annual interest rate of her loan?

Match the following

Felipe invested in a savings bond for 6 years and was paid simple interest at an annual rate of 3%. The total interest that he earned was $540. How much did he invest?

Chris borrowed $8,000 from a lender that charged simple interest at an annual rate of 7%. When Chris paid off the loan, he paid $1,680 in interest. How long was the loan for, in years?

Use Compound Interest Formula to find the ending balance.

Your 3 year investment of $7,300 received 7% interest compounded semiannually. What is your total return?

Use Compound Interest Formula to find the ending balance.

Your 4 year investment of $21,000 received 13.6% interest compounded quarterly. What is your total return?