WorksheetsSimple and Compound Interest HW
Total questions: 24
Worksheet time: 1hrs 14mins
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.
A deposit of $1200 is made into each of two bank accounts. No additional deposits of withdrawals will be made for 4 years.
- Account I earns 1.5% annual simple interest
- Account II earns 1.5% interest compounded annually.
What is the difference between the balances of the two accounts at the end of 4 years?
Round your answers to the nearest hundredth.
Monica wants to open a savings account with a deposit of $3000. Monica will not make any additional deposits or withdrawals after she opens the account. Her bank offers two different savings accounts.
- Account X pays 2.1% simple annual interest
- Account Y pays 2.4% interest compounded annually
What is the difference between the balances of the two accounts at the end of 5 years?
Ben deposits $1750 into each of two savings accounts.
- Account I earns 2.75% annual simple interest
- Account II earns 2.75% interest compounded annually
Ben does not make any additional deposits or withdrawals. What is the difference between the interest earned in account I and the interest earned in account II at the end of 2 years?
Gabriel deposits $2500 into each of two savings accounts.
- Account I earns 4% annual simple interest
- Account II earns 4% interest compounded annually
Gabriel does not make any additional deposits or withdrawals. What is the SUM of the balances of Account I and Account II at the end of 3 years?
Gabriel deposits $2,500 into each of two savings accounts. Account I earns 4% annual simple interest. Account II earns 4% interest compounded annually. Gabriel does not make any additional deposits or withdrawals. What is the sum of the balances of Account I and Account II at the end of 3 years?
$5,600.00
$5,612.16
$5,624.32
$5,200.00
Nicolas has $650 to deposit into two different savings account. Nicolas will deposit $400 into Account I, which earns 3.5 % annual simple interest. He will deposit $250 into Account II, which earns 3 1/4% interest compounded annually. Nicolas will not make any additional deposits or withdrawals. Which amount is the closest to the total balance of these two accounts at the end of 2 years?
$672.13
$695.00
$694.25
$694.51
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 is true 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.
Chris borrowed $8,000 from a lender that charged simple interest at an annual rate of 7%. When Chris paid off the loan, he paid $1,680 in interest. How long was the loan for, in years?
Felipe invested in a savings bond for 6 years and was paid simple interest at an annual rate of 3%. The total interest that he earned was $540. How much did he invest?
Starting money = $350. Interest rate = 2.5% TIme = 3 years. How much interest using simple interest formula?
$7.50
$26.25
$87.5
$262.50
A business owner invested $10,500 into an account that pays 1.2% annual simple interest. No additional deposits or withdrawals will be made. How much interest can the business owner expect to earn on the account at the end of 4 years?
A business owner opens a new investment account with a $10,000.00 deposit:
-The investment account earns 2.5% interest, compounded annually.
-The business owner does not plan to make any deposits or withdrawals.
How much interest will the investment account earn at the end of the first and second year?
Move the correct answer to each box. Not all answers will be used.
The account will earn (a) in interest at the end of the first year.
At the end of the second year, the account will have earned a total of (b) in interest.
Monica wants to open a savings account with a deposit of $3,000. Monica will not make any additional deposits or withdrawals after she opens the account. Her bank offers two different savings accounts.
-Account X pays 2.1% simple annual interest.
-Account Y pays 2.4% interest compounded annually.
Which statement about these accounts at the end of 5 years is true?
Account Y will earn how much more money than Account X?
(a)
Larry put $1,287 into a savings account 8 years ago.
-The account earned 4% simple annual interest.
-He made no additional deposits or withdrawals
Based on this information, what is the balance in dollars and cents in Larry's savings account at the end of these 8 years?
A student's parents invested $5,000 in a college savings account that pays 4.85% annual simple interest. No additional deposits or withdrawals will be made.
How much interest will be earned on the account at the end of 15 years?
Ben deposits $1,750 into each of his two savings accounts.
-Account I earns 2.75% annual simple interest.
-Account II earns 2.75% interest compounded annually.
Ben does not make any additional deposits or withdrawals. What is the difference between the interest Ben will earn in Account I and the interest Ben will earn in Account II at the end of 2 years?
(a)
Mr. Jenkins deposited $1,250 into an account. He made no additional deposits or withdrawals. Mr. Jenkins earned 4.25% simple interest on the money in the account. What was the balance in dollars and cents in Mr. Jenkins's account at the end of 4 years?
Gabriel deposits $2,500 into each of two savings accounts.
Account I earns 4% simple interest.
Account II earns 4% interest compounded annually.
Gabriel does not make any additional deposits or withdrawals. What is the SUM of the balances of Account I and Account II at the end of 3 years?
$5,600.00
$5,612.16
$5,624.32
$5,200.00
An employee put $5,000.00 in a retirement account that offers 9% interest compounded annually. The employee makes no additional deposits or withdrawals. Which amount is closest to the interest the employee will have earned at the end of 5 years? (Round your answer to the nearest hundredth)
An investor puts $2,500 into a life insurance policy that pays 8.5% simple annual interest. If no additional investment is made into the policy, how much accumulated interest should the investor expect at the end of 10 years?
