Analyzing Exponential Interest in Financial Scenarios

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

• $150

• $100

• $75

• $200

2. John wants to know how much money he will have in his account after 5 years if he invests $2,500 at an exponential simple interest rate of 4% per year. What will be the total amount?

• $4,000

• $3,500

• $2,500

• $3,000

3. A company invests $10,000 in a project that promises an exponential simple interest rate of 6% per year. How much interest will the company earn after 4 years?

• $1200

• $3000

• $2400

• $1800

4. Emily deposits $750 into a bank account with an exponential simple interest rate of 3% per year. How much total money will she have after 2 years?

• $750

• $795

• $810

• $780

5. If Mark invests $5,000 at an exponential simple interest rate of 7% per year, how much interest will he earn after 6 years?

• $4,200

• $2,100

• $3,000

• $1,500

6. A loan of $8,000 is taken out with an exponential simple interest rate of 5% per year. How much will the borrower owe after 3 years?

• $10,000

• $8,000

• $9,200

• $9,000

7. Lisa wants to save for a vacation and invests $1,200 at an exponential simple interest rate of 4% per year. How much interest will she earn after 5 years?

• $120

• $240

• $300

• $180

8. A business invests $15,000 in a new venture with an exponential simple interest rate of 8% per year. What will be the total amount after 2 years?

• $16,200

• $17,400

• $15,600

• $18,000

9. Tom has $3,000 in a savings account that earns an exponential simple interest of 5% per year. How much interest will he have earned after 4 years?

• $800

• $600

• $400

• $1,200

10. If a student borrows $1,500 at an exponential simple interest rate of 6% per year, how much will they need to repay after 3 years?

• $1,500

• $1,620

• $1,770

• $1,920