INTEREST QUIZZIZ - 8TH

Faith invested $4,000 into an account with a simple interest rate of 18%. Sam has $5,000 invested in an account with a compound annual interest rate of 15%. If they both leave their investments in for 4 years, what is the difference in the interest they receive?

• $214.52

• $116.03

• $2999.03

• $2880.00

Patrick receives an annual bonus of $3,000. He plans to deposit this bonus into a bank at 5.75% simple interest. How much interest will he have at the end of 5 years?

• $456.87

• $689.00

• $785.36

• $862.50

Marcus deposited $2000 into an account that earns 3.5% annually compounded interest. What is the interest that has accumulated after 6 years?

• $250.23

• $350.15

• $458.51

• $258.51

Marcus deposited $2000 into an account that earns 3.5% annually compounded interest. What is his total balance after 6 years?

• $2,000

• $2,350

• $2781.35

• $2458.51

When you use the compound interest formula A=P(1+r)^t , the answer represents the Total Amount. What is the total amount?

• Principal and the rate

• Principal and the Interest

If you use the formula for compound interest, A=P(1+r)^t . The answer will equal the total amount in the account. Total amount is the interest added to the principal.

• True.

• False.

The formula I = Prt. When you use this formula the answer will equal Interest.

• True

• False

What is the formula for Compound Interest? Use your formula chart.

• I= Prt

• A= P(1+r)^t

• I = P(r)^t

What is the formula for Simple Interest? Use your formula chart

• I = P+r+t

• A= Prt

• I =Prt

• A= P (1+r)^t

Emma invested $5,000 in an account with a compound interest rate of 4% annually. What will be her total balance after 3 years?

• $5,624.48

• $5,624.64

• $5,624.80

• $5,624.32