Compound and Simple Interest Worksheet

Which formula is not related to compound interest?

When changing the compounding period on an investment, which statement is true?

• More frequent compounding results in a greater amount of interest.

• More frequent compounding results in a lesser amount of interest.

• None of the above

• Nissan invests $5000 at 4%, compounded annually for 8 years.

For the formula I = Prt, the unit for t must be in:

• hours

• years

Ms. Chor invested in a 180-day term deposit at the bank earning 4% simple interest. She earned $98.63 in interest. How much did she receive at maturity?

• 98.63 / (0.04 * 180 / 365)

• 98.63 + 98.63 / (0.04 * 180 / 365)

A $10 000 debt is due in three years, and interest on the loan is 5% per year, compounded monthly. Calculate the discounted value of the loan today.

• $8 609.76

• $11 614.72

A bank is offering 7% annual compound interest on a savings account.  If you deposit $1,500, how much interest will you earn in three years?

• $31500

• $337.56

Tags

CCSS.7.EE.B.3

CCSS.7.RP.A.3

If an investment of $3,000 grows to $3,600 in 4 years, what is the annual compound interest rate?

• 4.66%

• 4.88%