Calculating Simple and Compound Interest

Mrs. Baxter deposits $2,000 in an account that earns 5% simple interest.

This is a ​ (a)   interest problem.

I would use the formula ​ (b)   to find the interest in this situation.

• simple
• compound
• I = prt
• A = p (1+r)*

Tags

CCSS.7.RP.A.3

Mrs. Baxter deposits $2,000 in an account that earns 5% simple interest. How much is Mrs. Baxter's investment worth after 8 years?

Do not write the $ sign. Round answer to the nearest hundredth

Mathematical Equivalence

ON

Tags

CCSS.7.RP.A.3

Joey made a deposit into an account that earns 6% simple interest. After 3 years Joey had earned $400. How much was Joey's initial deposit?

This is a ​ (a)   interest question.

I will use the ​ (b)   formula to solve this problem.

• simple
• I = prt
• compound
• A = p(1+r)*

Tags

CCSS.7.RP.A.3

Joey made a deposit into an account that earns 6% simple interest. After 3 years Joey had earned $400. How much was Joey's initial deposit?

Do not type the $ symbol. Round answer to the nearest penny.

Mathematical Equivalence

ON

Tags

CCSS.7.RP.A.3

Coach Cliffman made a deposit of $1,800 into an account that earns 2% annual compound interest. Find the amount of interest that Coach earned after 3 years.

This is a ​ (a)   interest problem.

I will use the ​ (b)   formula to solve this problem.

• compound
• A = p(1+r)*
• simple
• I = prt

Tags

CCSS.7.RP.A.3

Coach Cliffman made a deposit of $1,800 into an account that earns 2% annual compound interest. Find the amount of interest that Coach earned after 3 years.

Do not write $ symbol. Round answer to the nearest hundredth

Mathematical Equivalence

ON

Tags

CCSS.7.RP.A.3

Peter is calculating the interest earned on a deposit of $275 in an account that earns 8% simple interest after 12 years. His work is below.

I = 275(0.8)(12)

I = 2,640

What did Peter mark incorrectly?

Tags

CCSS.7.RP.A.3

Peter is calculating the interest earned on a deposit of $275 in an account that earns 8% simple interest after 12 years.

What is the correct amount of interest he earned?

round answer to the nearest penny

Mathematical Equivalence

ON

Tags

CCSS.7.RP.A.3

Isabella is calculating the interest earned on a deposit of $3,000 in an account that earns 4% compound interest after 6 years. Her work is shown below. Isabella determines that her deposit will then be worth $6,795.96. Explain what she did incorrectly.

A = p(1+r)*

A = 3,000 ( 1+.04)^6

A = 3,795.96

Tags

CCSS.HSF-LE.A.1C

Isabella is calculating the interest earned on a deposit of $3,000 in an account that earns 4% compound interest after 6 years.

What is the correct amount of interest earned?

Mathematical Equivalence

ON

Tags

CCSS.7.RP.A.3