Simple and Compound Interest Practice

A bank is offering 3% simple interest on a savings account. If you deposit $5,000, how much interest will you earn in 3 years?

• $5,450

• $450

• $4,500

• $45

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?

• $5,040

• $23,040

• $50,400

• $504

Ann borrowed $8,000 for 2 years at a simple interest rate of 2%.she will pay back the $8,000 as well as the 2% simple interest. How much will she pay back altogether?

• $320

• $3,200

• $8,320

• $8,323.20

When calculating interest, how do you write the percent?

• a fraction

• a decimal

• a whole number

• depends on the problem

Emily’s parents put $1,500 in her bank account for college tuition. At an interest rate of 8.25% compounded semiannually,what will be the balance after 18 years?

• $6,273.50

• $6,314.08

• $6,385.72

• $6,427.94

Mark took a loan out for $25,690 to purchase a truck. At an interest rate of 5.2% compounded monthly, how much total will he have paid after 5 years?

• $33,299.42

• $33,672.68

• $34,157.04

• $34,710.88

The Arnold's took out a loan for $195,000 to purchase a home. At a 4.3% interest rate compounded annually, how much total will they have paid after 30 years?

• $412,749.79
• $529.305.61
• $689,546.99
• $640,891.53

Calculate the interest earned on a $4,500 savings account that earns 2.5% simple interest over three years.

• $338.00
• $33.80
• $33.75
• $337.50

Determine the simple interest earned:  p= $2000  r= 4.6%  t= 4 years

• $2370.00
• $348.00
• $2368.00
• $368.00

Kennedy won $3,000 from a radio contest. If she puts this money in a bank account that earns 2.9% interest compounded quarterly, how much interest will she earn in 10 years?

• $915.59

• $933.28

• $979.81

• $1,005.09