Simple Interest and College Cost

What is a loan?

• money you do not have to pay back

• money given based on talents and grades

• money borrowed which must be repaid, usually with interest

• money you earn from working

Below are the estimated expenses that Abby will have to attend college:

Tuition: $8,000

Room & Board: $9,400

Books & Supplies: $1,500

Transportation: $600

What will be the total cost per year?

• $19,100

• $19,500

• $20,900

• $20,450

If Kate estimates college will be $40,300 per year and she receives $3,900 in scholarships, what is her estimated cost per year?

• $37,900

• $45,239

• $39,380

• $36,400

If John estimates college will be $4,300 per year and she receives $500 in scholarships, what is her estimated cost per year?

• $3,800

• $4,900

• $3,200

• $3,000

If it costs Ben $20,900 per year to attend college, how much will it cost for 4 years?

• $90,920

• $84,900

• $83,600

• $87,380

What is a scholarship?

• money given based on talents and grades

• cost of taking classes

• borrowed money that you must pay back

• something you do not want

Starting money = $350.
Interest rate = 2.5%
TIme = 3 years.
How much interest?

• $7.50
• $26.25
• $87.5
• $262.50

Jerry borrowed $4,000 for 5 years at 6% simple interest rate. How much interest is that?

• $800
• $1,000
• $1,200
• $1,500

Olivia would like to buy some new furniture for her home. She decides to buy the furniture on credit with 9.5% simple interest. If she spent $7400 on furniture, how much will she have paid in total after 8 years?

• $5624

• $13,024

• $56,240

• $1302.40

What is the rate in the following situation?

Jeremy takes out a loan of $30,000 to pay for college. He has to pay the loan back in the next 8 years at an interest rate of 7%.

• $30,000

• 7%

• 8 years

• $16,800