Mastering Simple and Compound Interest Calculations

1. Sarah invests $1,000 in a savings account that earns a simple interest rate of 5% per year. How much interest will she earn after 3 years?

• $100

• $150

• $200

• $75

2. John deposits $2,500 into a bank account that offers a compound interest rate of 4% per year, compounded annually. How much money will he have in the account after 2 years?

• $2,800.00

• $2,704.00

• $2,500.00

• $2,600.00

3. A loan of $800 is taken out with a simple interest rate of 6% per year. How much total interest will be paid after 5 years?

• $240

• $180

• $300

• $120

4. Emily invests $1,200 in a fund that offers a compound interest rate of 3% per year, compounded quarterly. What will be the total amount in her account after 4 years?

• 1300.50

• 1352.99

• 1400.00

• 1200.00

5. Mark wants to save $5,000 for a vacation in 5 years. If he invests in a savings account that offers a simple interest rate of 4% per year, how much interest will he earn by the end of the 5 years?

• $750

• $1,000

• $2,000

• $500

6. A credit card company charges 18% annual interest on unpaid balances, compounded monthly. If Lisa has a balance of $1,000, how much will she owe after 1 year if she makes no payments?

• 1195.62

• 1150.50

• 1200.00

• 1000.00

7. A car loan of $15,000 has a simple interest rate of 7% per year. How much total interest will be paid if the loan is paid off in 4 years?

• $4,200

• $2,100

• $5,600

• $3,000

8. Tom invests $3,000 in a savings account with a compound interest rate of 5% per year, compounded annually. How much will he have in the account after 3 years?

• $3,150.00

• $3,000.00

• $3,472.88

• $3,800.00

9. If a person invests $2,000 at a simple interest rate of 5% per year, how much total money will they have after 6 years?

• 2600

• 2500

• 3000

• 2400

10. A bank offers a compound interest rate of 6% per year, compounded semi-annually. If Jane invests $4,000, how much will she have in her account after 5 years?

• 5375.66

• 5200.50

• 6000.00

• 4500.00