Quiz about Simple and Compound Interest Quiz

Question 1

What is the formula for simple interest?

Accepted Answer

I=Prt

Answer

A=P(1+r)t

Answer

I=P(1+r)t

Answer

A=Prt

Question 2

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

Accepted Answer

the amount of money borrowed or deposited

Answer

the percent interest for this year

Answer

the amount taxed

Answer

the amount the bank owes you for being a customer at their bank

Question 3

If you are calculating the simple interest and you are given the time in months. How can you find the time in years?

Accepted Answer

divide the months by 12

Answer

divide 12 by the months

Answer

multiply 12 times the months

Answer

change the months to a decimal

Question 4

A bank is offering 2.5% simple interest on a savings account. If you deposit $5,000, how much interest will you earn in three years?

Accepted Answer

$375

Answer

$5375

Answer

$37500

Answer

$42500

Question 5

A bank is offering 2.5% simple interest on a savings account. If you deposit $5,000, what will be the total amount of money in your savings account after three years?

Accepted Answer

$5375

Answer

$375

Answer

$42500

Answer

$37500

Question 6

Sarah borrowed $18,000 for 4 years at an annual simple interest rate of 7%. How much interest will she pay at the end of the 4 years?

Accepted Answer

$5040

Answer

$23040

Answer

$504000

Answer

$18000

Question 7

Sarah borrowed $18,000 for 4 years at an annual simple interest rate of 7%. What is the total amount she will repay for the car loan?

Accepted Answer

$23040

Answer

$504000

Answer

$5040

Answer

$18000

Question 8

A bank is offering 7% annual compound interest on a savings account. If you deposit $1,500, what will be the total amount of money in your savings account after three years?

Accepted Answer

$1837.56

Answer

$337.56

Answer

$31500

Answer

$30000

Question 9

Riley invested $1,000 in savings bonds. If the bonds earn 6.75% interest compounded semi-annually, how much total will Riley earn in 15 years?

Accepted Answer

$2,706.86

Answer

$1,584.62

Answer

$2,651.39

Answer

$1,825.10

Question 10

Olivia would like to buy some new furniture for her home. She decides to buy the furniture on credit with 9.5% interest compounded quarterly. If she spent $7,400, how much total will she have paid after 8 years.

Accepted Answer

$15,683.28

Answer

$15,415.94

Answer

$15,927.56

Answer

$16,109.05

Question 11

Principal: $5000
Interest Rate: 3.75%
Time: 25 years
Compounded Monthly
State the future account balance.

Accepted Answer

$12,749.30

Answer

$12712.31

Answer

$12,657.59

Answer

$12550.84

Question 12

Avery deposits $8000 in a one year CD at 3.2% interest, compounded daily. What is Avery's ending balance?

Accepted Answer

$8,260.13

Answer

$8,528.72

Answer

$8,256.00

Answer

$8,000.70

Question 13

Jonah earned $150.36 in interest on an account that earns 1.4% simple interest. If Jonah opened the account 12 years ago, what was the principal amount?

Accepted Answer

$895

Answer

$850

Answer

$880

Answer

$902

Question 14

Scott took out a 72 month loan for $35,000 to purchase a new boat. If Scott paid $8,925 in simple interest, what was the interest rate?

Accepted Answer

4.25%

Answer

3.5%

Answer

4.5%

Answer

4.75%

Question 15

Abby earned $600 this past summer babysitting. She decided to put this money in a bank that earns a 5% simple interest rate. How many years will it take to double her initial deposit?

Accepted Answer

20

Answer

10

Answer

15

Answer

12

Simple and Compound Interest Quiz

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