Simple & Compound Interest Quiz

The simple interest formula is I=Prt.  The P represents the principle.  The principle is ___________________.  

• the amount of money borrowed or deposited
• the percent interest for his year
• the amount taxed
• the amount the bank owes you for being a customer at their bank

The simple interest formula is I=Prt.  The I represents ___________________.  

• the amount of money borrowed or deposited
• the percent interest for a year

• the time the money is in an account

• the amount of interest earned

Tags

CCSS.7.RP.A.3

The compound interest formula is:

A = P(1 + r)^t

What does the A represent?

• The amount of interest earned.

• The amount of time that has passed.

• The total amount of money after a certain amount of time.

• The amount required to invest.

Tags

CCSS.HSF-IF.C.8B

• $2,496

• $249,600

• $14,496

• $2,400

Holly is taking out a loan in the amount of $10,000. The loan is a 6-year loan at 4% simple interest. What is the total amount of the loan after the 6 years?

Formula: I=Prt

Clarissa put $2,500 into a savings account. The account pays 4.25% simple interest. How much money will Clarissa have in her account after 24 months?

Formula: I=Prt

• $2,717.02

• $212.50

• $2,712.50

• $217.02

• $1,860

• $360

• $1,889.57

• $389.57

Olivia will deposit $1,530 in an account that earns 6% simple interest every year. No additional money will be deposited or withdrawn from the account. How much in interest will Olivia earn after 3 years?

Formula: I=Prt

• $827.52       

• $831.10

• $839.45

• $846.80

• $13,024.00

• $15,294.83

• $7,894.83

• $22,694.83