Simple and Compound Interest Practice

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?

• $5375
• $375
• $37500
• $42500

Tags

CCSS.7.RP.A.3

A bank is offering 7% annual compound interest on a savings account.  If you deposit $1,500, how much interest will you earn in three years?

• $1837.56
• $337.56
• $30000
• $31500

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.SSE.A.1

CCSS.HSF.BF.A.1

CCSS.HSF.LE.A.1

CCSS.HSF.LE.A.2

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?

• $337.56
• $1837.56
• $31500
• $30000

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.SSE.A.1

CCSS.HSF.BF.A.1

CCSS.HSF.LE.A.1

CCSS.HSF.LE.A.2

Ricco deposits $500 in an account that earns 2.5% interest compounded annually for 3 years.  Wally deposits $500 in an account that earns 5.1% interest compounded annually for 2 years.  Who will earn the greatest amount of interest?

• Ricco will earn $13.85 more than Wally
• Wally will earn $13.85 more than Ricco

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.SSE.A.1

CCSS.HSF.BF.A.1

CCSS.HSF.LE.A.1

CCSS.HSF.LE.A.2

Harley wants to buy a car that costs $15,000.  Bank One offers her a 3 year loan at a simple interest rate of 9%.  Bank Two offers her a 5 year loan at an annual compound interest rate of 3.5%.  Which bank offer should she choose?

• She will pay $1,234.70 less if she chooses Bank Two.
• She will pay $1,234.70 less if she chooses Bank One.

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.SSE.A.1

Principal = $800
Interest Rate = 3.5%
Time = 6 months
Find the simple interest earned.

• 14
• 140
• 168
• 16.80

Tags

CCSS.7.RP.A.3

If you are told that you earned $45 interest in a savings account with 4.5% interest over 3 years, to find the initial deposit using I = Prt, you are solving for which variable?

• I

• P

• r

• t

Tags

CCSS.6.EE.B.7

A simple interest loan accumulated $50 in interest.  The loan was for 18 months and had a rate of 9%.  What was the amount borrowed?

• $200.99
• $1400.80
• $370.37
• $3,700

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%

• 0.032%

• 0.052%

• 5.2%

Tags

CCSS.6.EE.B.7

Mr. Johnson borrowed $8000 for 4 years to make home improvements. If he repaid a total of $10,320, at what interest rate did he borrow the money?

• 32.25%

• .3225%

• 7.25%

• .0725%

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.CED.A.4

CCSS.HSA.REI.A.1

CCSS.HSA.REI.B.3