KAP Personal Financial Literacy Review (Test 5)

Front

Stephanie deposits $10,000 into each of two savings accounts: - Account 1 earned 4.8% annual simple interest over a 2 year period - Account 2 earned 6% annual simple interest over a 3 year period. What is the difference in the amount of interest earned between account 1 and account 2 by the end of each period?

Back

$840

Front

John deposits $14,000 into each of two accounts. - Account 1 earned 6% interest compounded annually - Account 2 earned 8% annual simple interest What is the sum of the balances after 3 years?

Back

$34,034.22

Front

Two brothers, Marvin and Luis, each invest $5,000 into accounts that earn 5% interest. Neither brother deposits or withdraws anything from the account for 25 years. If Marvin's account earns compound interest and Luis's account earns simple interest, who will earn more interest after 25 years, and by how much?

Back

Marvin will earn $5,681.77 more in interest than Luis.

Front

Rosanna needs a loan of $20,000 for a down payment for a home. The loan charges 2.9% simple interest. How much will it cost to repay the loan after 4 years?

Back

$22,320

Front

Difference in interest for $8,350 loan: 5-year at 5.3% vs 7-year at 5.5% simple interest.

Back

$1,002

Front

Angelina has to take out a loan for $18,000. Which option will allow her to pay the least amount of interest? Options: 7-year loan at 5.9% simple interest, 6-year loan at 5.75% simple interest, 5-year loan at 6% simple interest, 8-year loan at 6.2% simple interest.

Back

A 5-year loan at 6% simple interest.

Front

Erik took out a loan for $8400 for 6 years at a compound interest rate of 5.5%. How much interest does Erik owe from the loan?

Back

$3,182.28

Tags

Expressions/Equations

TEKS.MATH.8.12A

Front

Back

H

Front

Back

H

Front

Back

The balance increases by 2% of the sum of the prior year's ending balance and $200.00.