Practice QUIZ: Simple Interest and Compound Interest

What is the formula for simple interest?

• A=P(1+r)^t
• I=Prt
• I=P(1+r)t
• A=Prt

Garrison deposited $500 in an account that earns 5% annual interest compounded annually. If he makes no withdrawals or deposits, how much interest will the account earn after 4 years?

Mathematical Equivalence

ON

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CCSS.HSF.BF.A.2

Mr. Diable invested $3,500 in a 7 year CD that pays 4.2% interest compounded annually. How much interest will the CD earn over the 7 years?

• $147.00

• $245.00

• $1,168.12

• $4,668.12

Sue got an $8000 loan to buy a used car. Due to her bad credit, the interest rate was 16.8%. If the loan length was 60 months, how much did she end up paying for the car?

• $6720

• $14720

• $80,640

• $8672

Tags

CCSS.7.RP.A.3

Your 3 year investment of $20,000 received 5.2% interest compounded annually.  What is your total return?

• $23,285.05
• $3,285.05
• $2,385
• $32,285

Caiden earned $475 from mowing lawns last summer. He deposited this money in an account that pays an interest rate of 3.8% compounded annually. What will be his balance after 15 year?

• $827.52
• $831.10
• $839.45
• $846.80

I deposited $46,875 into a simple interest, and at the end of 1 year 8 months, the account had grown to $50,000. Find the rate of interest per year.

• 64%

• 4%

• 4.167%

• 66 2/3%

Tags

CCSS.7.RP.A.3

Mark got a 4-year simple interest loan for $1750, but he ended up having to pay back $2114. What was the interest rate? (you need to round)

• 30.2%

• 0.302%

• .052%

• 5.2%

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CCSS.6.EE.B.7

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)  

• $5,000
• 5%
• 3 years

Tags

CCSS.7.RP.A.3

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?

Mathematical Equivalence

ON

Tags

CCSS.7.RP.A.3