Simple and compound interest

What is the simple interest for a loan with principal of $10,000, an interest rate of 6% and a time of 4 years?

• $600

• $2400

• $24,000

• $12,400

What is the simple interest for a loan with principal of $2,500, an annual interest rate of 6.25% and a time of 18 months?

• $112.50

• $2,812.50

• $15, 625

• $234.38

A high school graduate works full time. She needs to borrow $1,500 to attend the local junior college, but she won't be able to pay it back for 2 years. Should she take out a loan for 18 percent annual simple interest,, or a loan with 12 percent annual compound interest?

• The simple interest loan because the interest is $540.

• The compound interest loan because the interest is $1881.60

• The simple interest loan because the interest is $2040.

• The compound interest loan because the interest is $381.60.

Choose the best loan option.

• A

• B

• C

• D

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.CED.A.3

CCSS.HSA.REI.B.3

CCSS.HSA.SSE.A.1

Which amount is closest to the amount of interest?

• F

• G

• H

• J

Tags

CCSS.HSA.SSE.A.1

• F

• G

• H

• J

• F

• G

• H

• J

• A

• B

• C

• D

• A

• B

• C

• D

• F

• G

• H

• J