Free Printable 8th grade comparing interest practice

Worksheets

8th grade comparing interest practice

Total questions: 15

Worksheet time: 4hrs 45mins

Name

Class

Date

Holly is taking out a loan in the amount of $10,000. Her choices for the loan are a 4-year loan at 4% simple interest and a 6-year loan at 5% simple interest. What is the difference in the amount of interest Holly would have to pay for each of these two loans?

$1,600

$3,000

$4600

$1,400

Olivia will deposit $1,530 in an account that earns 6% simple interest every year. Her sister Melinda will deposit $1,500 in an account that earns 8% interest compounded annually. The deposits will be made on the same day, and no additional money will be deposited or withdrawn from the accounts. Which statement about the balances of Olivia's account and Melinda's account at the end of 3 years is true?

Olivia's account will have about $5.40 more than Melinda's account.

Olivia's account will have about $84.17 more than Melinda's account.

Melinda's account will have about $5.40 more than Olivia's account.

Melinda's account will have about $84.17 more than Olivia's account.

Isabella deposited $2,000 in an account that pays 5% simple annual interest. After one year how much interest will her investment pay?

$2,100

$100

$10,000

$400

Tamara invested $15,000 in an account that pays 4% annual simple interest. Tamara will not make any additional deposits or withdrawals. How much interest will Tamara earn on her investment at the end of 3 years?

$1,800

$600

$450

$1,873

Mr. Wilkins deposited $2,500 in a new account at his bank.
*The bank pays 6.5% interest compounded annually on this account.
*Mr. Wilkins makes no additional deposits or withdrawals.
Which amount is closest to the balance of the account at the end of 2 years?

$2,835.56

$2,513.00

$2,662.50

$2,825.00

Anne deposited $500 in an

account that earns 6% simple annual interest.

Shelly deposited $500 in an account that earns 6% annual interest

compounded annually. They leave the

money in the account for 4 years. Which

statement is true about the two investments after 4 years?

Shelly will have $131.24 more in her account

than Anne has in her account.

They will have the same

amount in their accounts.

Shelly will have $11.24 more

in her account than Anne has in her account.

Anne will have $11.24 more in

her account than Shelly has in her account.

Carly

deposited $800 in an account that earns 6% compounded annually. Lara deposited

$800 in an account that earns 6% simple interest. How much will each girl have

in their account at the end of 10 years if they make no withdrawals or deposits?

Carly: $1432.68 Lara: $1280

Carly: $1444.89 Lara: $1280

Carly: $1444.89 Lara: $1320

Carly: $1432.68 Lara: $1320

Steve deposited

$5,000 in a savings account that pays 4% interest compounded annually. Which

equation could be used to find the value of the account after 3 years?

A = 5,000(1 + 4)³

A = 5,000(1 + 0.04)³

A = 5,000(1 + 0.4) x 3

A = 5,000(0.04)³

The compound interest formula is:

A = P(1 + r)^t

What does the A represent?

The amount of interest earned.

The amount of time that has passed.

The total amount of money after a certain amount of time.

The amount required to invest.

10.

the time has to be in _____________

years

months

days

seconds

11.

Ricco deposits $500 in an account that earns 2.5% interest compounded annually for 3 years. Wally deposits $500 in an account that earns 5.1% interest compounded annually for 2 years. Who will earn the greatest amount of interest?

Ricco will earn $13.85 more than Wally

Wally will earn $13.85 more than Ricco

12.

Harley wants to buy a car that costs $15,000. Bank One offers her a 3 year loan at a simple interest rate of 9%. Bank Two offers her a 5 year loan at an annual compound interest rate of 3.5%. Which bank offer should she choose?

She will pay $1,234.70 less if she chooses Bank Two.

She will pay $1,234.70 less if she chooses Bank One.

13.

Both Ryan and Tom open their accounts with an initial deposit of $3500. They are both planning a six-year investment and will withdraw their money after 6 years. Who will have a greater balance in six years? How much more will that person have?

Tom will have $83.77 more than Ryan.

Ryan will have $83.77 more than Tom.

Ryan will have $3416.23 more than Tom.

Tom will have $3416.23 more than Ryan.

14.

Rosie will deposit $1,420 in an account that earns 4% simple interest every year for 4 years. Her sister Avery will deposit $1,400 in an account that earns 6% interest compounded annually for 4 years. What is the difference in the amount earned between the two sisters over the 4 years?

Rosie will earn $120.27 more than Avery.

Avery will earn $1540.27 more than Rosie.

Rosie will earn $1540.27 more than Avery.

Avery will earn $120.27 more than Rosie.

15.

Kara borrowed $21,000 for 5½ years at an annual compound interest rate of 7.5% to buy a car. How much interest will she pay on top of the principal at the end of the 5½ years?

$31258.30

$27165

$10258.30

$981750

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8th grade comparing interest practice

Total questions: 15

Worksheet time: 4hrs 45mins

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