Simple Interest and Compound Interest Quiz

The simple interest formula is I=Prt. What does the t represent?

• Time

• Rate

• Interest

• Principle

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

• the amount taxed

• the starting amount

• the amount the bank owes you for being a customer

• the amount of interest

Simple Interest: Emilia borrows $1200 from a bank with an 8% interest rate for 2 years. What is the amount of interest she will have to pay?

• 135

• 1392

• 150

• 192

What does the A represent in the compound interest formula?

• The amount of interest earned

• The amount of time that has passed

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

• The starting amount

Compound Interest is interest on the principal plus ______________.

• interest earned

• taxes

• fees

• penalties

Which accounts are good for saving?

• Money Market Account

• Traditional Savings Account

• Individual Retirement Account

• All of the Above

If Bill makes $4500 per month and pays $3467 in expenses. How much does he have left to put in his savings?

• 3013

• 3301

• 1033

• 1330

About how frequently does Hope receive a paycheck?

• Daily

• Weekly

• Monthly

• Every two weeks

Which statement below accurately describes Hope's gross wages?

• Daily

• Weekly

• Monthly

• Every two weeks

Gross wages are calculated by multiplying Hope's hourly rate by the number of hours she worked

• Gross wages are calculated by multiplying Hope's hourly rate by the number of hours she worked

• Gross wages are calculated by subtracting all of Hope's deductions from her gross income

• Gross wages are Hope's fixed salary, which she receives for every pay period

• Gross wages are how much Hope has earned over the course of the entire year