WorksheetsCOMPOUND AND SIMPLE INTEREST
Total questions: 10
Worksheet time: 54mins
Name
Class
Date
1.
The simple interest formula is I=Prt. The P represents the principle. The principle is ___________________.
a)
the amount of money borrowed or deposited
b)
the amount taxed
c)
the percent interest for this year
d)
the amount the bank owes you for being a customer at their bank
2.
To earn as much interest as possible, you should open a savings account that earns ______ interest and has the _____ interest rate.
a)
compound; lowest
b)
simple ; lowest
c)
compound ; highest
d)
simple ; highest
3.
What is the formula for simple interest?
a)
A=P(1+r)t
b)
I=Prt
c)
I=P(1+r)t
d)
A=Prt
4.
Ann puts $300 in a bank account earning 4% interest. How much will she earn in interest in 1 year?
a)
4
b)
8
c)
12
d)
16
5.
John just opened a savings account and wants to maximize the amount of interest he earns. Which of the following actions enable him to earn MORE interest?
a)
selecting an account with a higher interest rate
b)
leaving his money in the account for a long period of time
c)
transferring money into his checking account each month
d)
higher interest rate AND leaving money in for a longer time
6.
Smithville Bank is offering each of it's customers a record 3.4% interest on new savings account. If Mr. Thomas opens an account with $1,500, how much interest will he earn in 3 years?
a)
$15,300
b)
$1,530
c)
$153
d)
The answer is not shown
7.
Find the compound interest:
Principal: $1735
Interest Rate: 0.8%
Time: 1 year
Principal: $1735
Interest Rate: 0.8%
Time: 1 year
a)
$1,388
b)
$138.80
c)
$13.88
d)
None of the answers are correct.
8.
Find the simple interest:
Principal: $6,000
Interest Rate: 5%
Time: 6 months
Principal: $6,000
Interest Rate: 5%
Time: 6 months
a)
$150
b)
$1,800
c)
$1,500
d)
$15,000
9.
1) Gabby invested $100 into a savings account that earned simple interest at a rate of 1.5%. She plans to keep the money in the account for the next ten years. How much would she have in the account at the end of ten years?
a)
$15
b)
$115
c)
$116.05
d)
$1,500
10.
2) Jacob invested $400 into a savings account that earned simple interest at a rate of 1.25%. He plans to keep it in the account for the next 10 years. How much interest would he gain in the account after 10 years?
a)
$50
b)
$450
c)
$500
d)
$5,000
100 %
