Interest Calculations Quiz

Calculate the simple interest for a principal amount of $500 and 5% per annum, and a time period of 3 years.

• $50

• $75

• $100

• $125

• I

• P

• r

• t

• $81.60

• $82.40

• $83.20

• $84.00

• The principal amount

• The interest rate

• The time period

• The total amount

A bank offers a simple interest rate of 6% per annum. How much interest will you earn on a deposit of $2000 after 4 years?

• $360

• $480

• $500

• $600

Which of the following scenarios best describes the use of simple interest?

• Calculating the interest on a savings account that compounds monthly

• Calculating the interest on a fixed deposit for a specific period

• Calculating the interest on a loan with annual compounding

• Calculating the interest on a credit card balance

If you invest $1500 at an annual compound interest rate of 3% for 5 years, what will be the total amount?

• $1736.50

• $1738.14

• $1738.91

• $1742.56

• The principal amount

• The interest rate

• The time period

• The total interest

Calculate the compound interest for a principal of $1200, an interest rate of 4% per annum, compounded annually for 3 years.

• $149.84

• $149.50

• $150.60

• $151.70

Which of the following is a real-life example of compound interest?

• A car loan with a fixed interest rate

• A savings account with interest added to the balance monthly

• A personal loan with a simple interest rate

• A mortgage with a fixed monthly payment