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WorksheetsSimple & Compound interest
Total questions: 10
Worksheet time: 12mins
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.
What does P stand for in I = Prt ?
a)
percent
b)
partner
c)
percent change
d)
principal
6.
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
7.
What is important about how time is calculated in I= Prt ?
a)
it must be in months
b)
it must be in years
c)
it is not calculated
8.
Which type of interest results in faster growth of money over time?
a)
A .Simple interest
b)
B. Compound interest
c)
C. Both are the same
d)
D. Depends on the interest rate
9.
Maria wants to invest in a fixed deposit account. Which of the following will help her earn the most interest?
a)
choosing a longer investment term
b)
selecting a lower interest rate
c)
withdrawing interest monthly
d)
investing in a savings account instead
10.
In the formula A = P(1 + r)t, what does A represent?
a)
the total amount after interest
b)
the principal amount
c)
the interest earned
d)
the rate of interest
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