Compound Interest and Simple Interest Problems

Which is the formula for calculating compound interest?

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CCSS.HSA.CED.A.1

CCSS.HSA.SSE.A.1

CCSS.HSF.BF.A.1

CCSS.HSF.LE.A.1

CCSS.HSF.LE.A.2

Starting money = $350. Interest rate = 2.5% TIme = 3 years. How much interest using simple interest formula?

• $7.50

• $26.25

• $87.5

• $262.50

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CCSS.7.RP.A.3

Ivan deposits $5,000 into an account that pays simple interest at a rate of 5% per year. How much interest will he be paid in the first 3 years?

What is the principle? ​ (a)  

What is the rate? ​ (b)  

What is the time? ​ (c)  

• $5,000
• 5%
• 3 years

Tags

CCSS.7.RP.A.3

Emmy invests $1200 in a savings account that earns 8% compound interest per year. How much will her account balance be after 2 years?

• $1399.68

• $2592.00

• $199.68

• $1592.00

Mr. Peterson paid $1,020 in simple interest for a loan, which was given to him at a rate of 5% for 3 years. How much money did he borrow originally?

• $5400.00

• $6800.00

• $3240.00

• $14620.00

Tags

CCSS.7.RP.A.3

Your 2-year investment of $20,000 received 5.2% interest compounded annually.  What is your total return?

• $2080.00

• $1040.00

• $22134.08

• $42080.00

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CCSS.HSF-LE.A.1C

You invested $1,900 at 4% interest compounded annually for 2 years.  How much interest did you earn in 2 years?

• $155.04

• $2055.04

• $137.24

• $2052.00

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CCSS.HSF-LE.A.1C

You deposit $2,500 in a savings account.

What is the difference in the amount of interest that will be paid in each situation?

Option A) Interest rate of 8.25% simple interest for 2 years

Option B) Interest rate of 6.5% compounded annually for 2 years

• $769.40

• $76.94

• $335.56

• $68.52

What is the formula for simple interest?

• A=P(1+r)^t

• I=P(1+r)^t

• I=Prt

• A=Prt

Tags

CCSS.7.RP.A.3

Emmy borrows $1200 from a bank with 8% simple interest per year. How much will she pay back after 2 years?

• $192

• $150

• $1392

• $1350

Tags

CCSS.7.RP.A.3