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Compound and Simple Interest Questions

Total questions: 10

Worksheet time: 11mins

Name
Class
Date
1.

Find the total amount of interest to the nearest cent. If the interest is compounded annually 2750 at 8% for 2 years what is the total amount of interest?

a)

457.60

b)

78.00

c)

67.80

d)

380.96

2.

The simple interest formula is I=PRT. what does the t represent?

a)

Time

b)

Principle

c)

Rate

d)

Tables

3.

The simple interest formula is I=PRT. The P represents principle. the principle is??

a)

the money taken

b)

the money owned

c)

The amount of money borrowed or deposited

d)

the percentage

4.

Emilio borrows 1200 from a bank with 8% simple interest per year. How much will he pay back total in two years

a)

69.99

b)

578

c)

786.35

d)

1392

5.

find the principle for a loan that has an earned interest of 3500 with an annual rate of 10 for 5 years.

a)

550

b)

7,000

c)

13,500

d)

78

6.

Audrey deposited $2,800 in a

savings account that pays 2.65% interest compounded annually. What is the total

value of the account after 7 years?

a)

$562.57

b)

$3362.57

c)

$14,514.15

d)

$2,569,680

7.

I=PRT whee r represents rate. rates must be converted into a _______ before multiplying

a)

percentage

b)

fraction

c)

decimal

d)

mixed fraction

8.

Leroy borrowed 1500 at annual simple interest rate of 12%. he paid 270 in interest. For what amount of time will leroy borrow the money.

a)

18 months

b)

7 days

c)

13 months

d)

10 minutes

9.
What does the "I" in the interest formula stand for?
a)
Important
b)
Interest
c)
Internet
d)
Igloo
10.

Garrison

deposited $500 in an account that earns 5% annual interest compounded annually. If he makes no withdrawals or deposits, how

much interest will the account earn after 4 years?

a)

$600

b)

$100

c)

$607.75

d)

$107.75