WorksheetsMMA Simple & Compound Interest Quiz
Total questions: 19
Worksheet time: 2hrs 35mins
You invest $5,000 into a savings account. The savings account earns 6% simple interest. How much interest will the account earn in 5 years?
$150
$1,500
$15,000
$15
You invest $5,000 into a savings account. The savings account has a simple interest at 6%. What will the total value of the account be after 5 years?
$5,150
$5,015
$6,500
$21,000
You invest $8,000 into a bank account with simple interest. 10 years later, the account has earned $3,000 in interest. What interest rate did the bank give you?
3.75%
26.7%
.026%
.0375%
You are saving up to buy your first car. You have $2,000 now, but the car you really want costs $2,500. You’ve found a savings account that will offer you 7% simple interest. How much more money do you need to earn in order to reach your savings goal?
$2,500
$500
$4,500
You are saving up to buy your first car. You have $2,000 now, but the car you really want costs $2,500. You’ve found a savings account that will offer you 7% simple interest. How long will it for your account reach your goal?
3.6 years
17.9 years
2.9 years
20 years
A man invests $2,000 in an account that pays 8% interest compounded quarterly. What is the total amount he will have in his account after 10 years?
$4,416.08
$2,939,543.14
$43,449.04
$4,317.85
Jane deposits $450 into a savings account that generates 10% interest compounded monthly. How much money will be in the account after 12 years?
$1,486.64
$1,412.29
$507.35
You have decided to start a savings account with $200 given to you as a birthday gift and you are trying to decide where to invest it. Berkner Bank is offering simple interest for 4 years at 5%, while Rams Bank of Richardson is offering 4.75%, compounded quarterly over 4 years. Which is the better deal?
Rams Bank of Richardson
Berkner Bank
In the formula for simple interest, what does the I stand for?
I=P×r×tInterest
Internet
Interview
Interception
In the formula for simple interest, what does the P stand for?
Principal
Primary
Property
Printer Jam
In the formula for simple interest, what does the r stand for?
Interest rate
Roentgens
Return on Investment
Refund
In the formula for simple interest, what does the t stand for?
Time in years
Time in months
Thousands
Tips
In the formula for compound interest, what does the A stand for?
Total of Interest and Principal
Interest Only
Andrew Jacksons (He's on the $20 bill)
Accrued debt
In the formula for compound interest, what does the n stand for?
Number of compounding periods per year
Number of years
Number of deposits
Number of dollars
When using the formula for compound interest, what is the value of n if an account compounds annually?
A=P(1+nr)nt1
2
4
12
When using the formula for compound interest, what is the value of n if an account compounds semi-annually?
A=P(1+nr)nt1
2
4
12
When using the formula for compound interest, what is the value of n if an account compounds quarterly?
A=P(1+nr)nt1
2
4
12
When using the formula for compound interest, what is the value of n if an account compounds monthly?
A=P(1+nr)nt1
2
4
12
When choosing a savings account, is it better to invest in an account that pays 5% compounded annually, or 5% compounded quarterly?
Compounded annually
Compounded quarterly
