12 MAE Simple and Compound Interest 1

The simple interest formula is I=Pin.  The P represents the principle.  The principle is ___________________. 

• the amount of money borrowed or deposited
• the amount taxed
• the percent interest for this year
• the amount the bank owes you for being a customer at their bank

If you are calculating the simple interest and you are given the time in months.  How can you find the time in years?

• divide 12 by the months
• multiply 12 times the months
• divide the months by 12
• change the months to a decimal

Tags

CCSS.7.EE.B.3

CCSS.7.RP.A.2

CCSS.7.RP.A.3

I = Pin where i represents the interest rate.  Interest Rates must be converted into ____ before multiplying.

• fractions
• mixed numbers
• decimals
• integers

Smithville Bank is offering each of it's customers a record 3.4% interest on new savings account. If Mr. Thomas opens an account with $1,500, how much interest will he earn in 3 years?

• $15,300
• $1,530
• $153
• The answer is not shown

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.REI.B.3

CCSS.HSA.SSE.A.1

Find the total amount in the account to the nearest cent if the interest is compounded annually. 
$2750 at 8% for 2 years

• $220
• $440
• $660

Tags

CCSS.HSA.CED.A.1

CCSS.HSF.BF.A.1

CCSS.HSF.LE.A.1

CCSS.HSF.LE.A.2

Starting money = $350. Interest rate = 2.5% TIme = 3 years. How much interest is earned?

• $7.50
• $26.25
• $87.5
• $262.50

Emilio borrows $1200 from a bank with 8% simple interest per year.  How much will he have to pay back total in 2 years?

• $150
• $192
• $1350
• $1392

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.REI.B.3

CCSS.HSA.SSE.A.1

Emily's parents put $1,500 in her bank account for college tuition. At an interest rate of 8.25% compounded semi-annually, what will be the balance after 18 years?

• $6,273.50
• $6,314.08
• $6,385.72
• $6,427.94

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.SSE.A.1

CCSS.HSF.BF.A.1

CCSS.HSF.LE.A.1

CCSS.HSF.LE.A.2

The population of Australia was 24.8million in 2018 with an annual growth rate of 1.32%. If the population continues to grow at the same rate, use the compound interest formula to estimate the population in 2080

• 53.9million

• 54.9million

• 55.9million

• 56.9million

Georgia invests $5800 in an account that earns interest at the rate of 2.7%p.a. compounding weekly. Use the compound interest formula to calculate how much is in her account after three years.

• $6 269.80

• $46,980

• $6,282.60

• $7,698