STAAR DAY 10

1.What is the formula for simple interest?

• I = P(1 + r)^t

• I = Prt

• A = Prt

• A = P(1 + r)^t

2.What is the formula for compound interest.

• I = Prt

• A = Prt

3.In interest time must be in?

• Days

• Months

• Years

• seconds

4.In interest I need to convert percent into decimal by dividing by?

• 1

• 10

• 100

• 1000

5.When calculating simple interest, it only gives me the?

• Total

• Principal

• Interest

• None

6.When calculating compound interest, it only gives me the?

• Total

• Principal

• Interest

• None

7.When calculating simple interest, how do I find my total by?

• Adding the principal.

• Subtracting the principal.

• Nothing, it automatically gives me the total.

• Multiplying the principal.

• Dividing the principal.

8.When calculating compound interest, how do I find the interest only?

• Adding the principal.

• Subtracting the principal.

• Nothing, it automatically gives me the total.

• Multiplying the principal.

• Dividing the principal.

9.Anne deposited $500 in an account that earns 6% simple annual interest. Shelly deposited $500 in an account that earns 6% annual interest compounded annually. They leave the money in the account for 4 years. Which statement is true about the two investments after 4 years?

• Shelly will have $131.24 more in her account than Anne has in her account.

• They will have the same amount in their accounts.

• Shelly will have $11.24 more in her account than Anne has in her account.

• Anne will have $11.24 more in her account than Shelly has in her account.

10.Carly deposited $800 in an account that earns 2% annual compounded annually. Lara deposited $800 in an account that earns 2% simple interest. How much will each girl have in their account at the end of 8 years if they make no withdrawals or deposits?

• Carly: $937.33 Lara: $928

• Carly: $927.33 Lara: $918

• Carly: $939.33 Lara: $938

• Carly: $928 Lara: $937.33