Simple and Compound Interest HW

The compound interest formula is:

A = P(1 + r)^t

What does the A represent?

• The amount of interest earned.

• The amount of time that has passed.

• The total amount of money after a certain amount of time.

• The amount required to invest.

A deposit of $1200 is made into each of two bank accounts. No additional deposits of withdrawals will be made for 4 years.

-        Account I earns 1.5% annual simple interest

-        Account II earns 1.5% interest compounded annually.

What is the difference between the balances of the two accounts at the end of 4 years?

Round your answers to the nearest hundredth.

Mathematical Equivalence

ON

Monica wants to open a savings account with a deposit of $3000. Monica will not make any additional deposits or withdrawals after she opens the account. Her bank offers two different savings accounts.

-        Account X pays 2.1% simple annual interest

-        Account Y pays 2.4% interest compounded annually

What is the difference between the balances of the two accounts at the end of 5 years?

 

 

Mathematical Equivalence

ON

Ben deposits $1750 into each of two savings accounts.

-        Account I earns 2.75% annual simple interest

-        Account II earns 2.75% interest compounded annually

Ben does not make any additional deposits or withdrawals. What is the difference between the interest earned in account I and the interest earned in account II at the end of 2 years?

 

Mathematical Equivalence

ON

Gabriel deposits $2500 into each of two savings accounts.

-        Account I earns 4% annual simple interest

-        Account II earns 4% interest compounded annually

Gabriel does not make any additional deposits or withdrawals. What is the SUM of the balances of Account I and Account II at the end of 3 years?

Mathematical Equivalence

ON

Your 3 year investment of $20,000 received 5.2% interest compounded annually.  What is your total return?

• $23,285.05
• $3,285.05
• $2,385
• $32,285

Caiden earned $475 from mowing lawns last summer. He deposited this money in an account that pays an interest rate of 3.8% compounded annually. What will be his balance after 15 year?

• $827.52
• $831.10
• $839.45
• $846.80

What is the formula for simple interest?

• A=P(1+r)^t
• I=Prt
• I=P(1+r)t
• A=Prt

Gabriel deposits $2,500 into each of two savings accounts. Account I earns 4% annual simple interest. Account II earns 4% interest compounded annually. Gabriel does not make any additional deposits or withdrawals. What is the sum of the balances of Account I and Account II at the end of 3 years?

• $5,600.00

• $5,612.16

• $5,624.32

• $5,200.00

Nicolas has $650 to deposit into two different savings account. Nicolas will deposit $400 into Account I, which earns 3.5 % annual simple interest. He will deposit $250 into Account II, which earns 3 1/4% interest compounded annually. Nicolas will not make any additional deposits or withdrawals. Which amount is the closest to the total balance of these two accounts at the end of 2 years?

• $672.13

• $695.00

• $694.25

• $694.51