Simple and Compound Interest

When you are looking for the Interest only on Simple Interest. What formula do you use?

• I=prt

• I= Prt

  then add the P

• A= p (1+r)^t

• A= p (1+r)^t

  then subtract the p

When you are looking for the Balance on Simple Interest. What formula do you use?

• I=prt

• I= Prt

  then add the P

• A= p (1+r)^t

• A= p (1+r)^t

  then subtract the p

When you are looking for the Interest only on Compound Interest. What formula do you use?

• I=prt

• I= Prt

  then add the P

• A= p (1+r)^t

• A= p (1+r)^t

  then subtract the p

When you are looking for the Balance on Compound Interest. What formula do you use?

• I=prt

• I= Prt

  then add the P

• A= p (1+r)^t

• A= p (1+r)^t

  then subtract the p

What is the interest for a Simple Interest loan of $12,000 for 6 years at 2.5%?

• $1,800

• $2,000

• $1,500

• $1,200

What is the interest for a compound interst loan at 12% for 60 months on $7,000?

• $4,200

• $12,336.39

• $5,336.39

What is the Balance of a simple interest savings account after 4 years at a 3% interest rate for the amount of $2,500?

• $2,800

• $2,900

• $300

What is the Balance on $5,000 savings account after 18 months with a compound interest rate of 3.5%?

• $5,265

• $5,264.78

• $10,264.78

• $5,262.50

Two customers took out loans from a Bank.

• -Kevin took out a 4-year loan for $5,000 and paid 4.2% annual simple interest

• -Nur took out a 6-year loan for $5,000 and paid 3.9% annual simple intetest

What is the difference between the amounts of interest Keving and Nur paid for their loans?

• $150

• $400

• $220

• $330

Ethan wants to open an account with $5,000 at 10% for 3 years. How much more will he save by using a compound interest account than a simple interest account?

• $155

• $5000

• $175

• $5155