Simple Interest Calculation Worksheet

How much simple interest does a $20,000 investment earn at 3.5% over 15 years?

• $10,500

• $28,250

• $11,450

• $10,080

If the interest on your savings account is $80, the starting balance on the account is $1000, and length of time for it has been in savings is 2 years, what is the interest rate you are earning?

• 3%

• 2.8%

• 3.5%

• 4%

What is the word used to describe the dollar amount earned on money kept in a savings account?

• borrowing fee

• Interest

• Principal

• Term

Amy needed to pay some bills online. She started by checking her balance which showed she had $600 in the bank. She proceeds to pay the bills which totaled $115. She then decided to go out for lunch with a friend. With no cash, she stopped by her bank’s ATM machine and withdrew $50.00 from the same checking account. Assuming her bank is able to immediately post ATM transactions to customer accounts, how much should Amy believe she really has available to her in her account?

• $340

• $600

• $435

• $485

$1000 is placed in an account at 5% compounded annually for 2 years. It is then withdrawn at the end of the two years and placed in another bank at the rate of 3% compounded annually for 3 years. What is the balance in the second account after the 3 years (so in total after the 5 years is complete)?

• 1102.25

• 1204.46

• 1651.20

• 1502.51

What is the minimum that should be in your emergency fund?

• people don't need an emergency fund

• 1 year minimum

• 1 month minimum

• 6 months minimum

Which term matches the definition: "Wrote checks for more money than was in the account"?

• Overdrawn

• Certificate of Deposit

• Outstanding checks

• Cancelled checks

Which term matches the definition: "Log where you record checking account transactions"?

• Check register

• Cancelled checks

• Overdrawn

• Certificate of Deposit

Which term matches the definition: "Checks which the bank HAS paid"?

• Cancelled checks

• Outstanding checks

• Overdrawn

• Reconcile your account

Which term matches the definition: "Locks up money - not easy to withdraw; higher rate"?

• Certificate of Deposit

• Check register

• Overdrawn

• Outstanding checks