COMPOUND AND SIMPLE INTEREST

2) Jacob invested $400 into a savings account that earned simple interest at a rate of 1.25%.  He plans to keep it in the account for the next 10 years.  How much interest would he gain in the account after 10 years?

• $50
• $450       
• $500       
• $5,000

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.REI.B.3

CCSS.HSA.SSE.A.1

4)  Rosa invests her tax return check into an account with a compounded interest rate of 1 3/4 %.  She plans on keeping the account open for 12 years.  If she has $1600.87 in her account at the end of 12 years, approximately how much was her initial investment?

• $1,300
• $1,970
• $7,690
• $11,000

Tags

TEKS.MATH.2A.5B

TEKS.MATH.A.9C

5)  Megan is currently in 8^th grade and wants to begin saving money for college.  She wants to invest $2000 in a simple interest account that pays at a rate of 3.5%.  How many years will she have to save for the account to gain $490 in simple interest? 

• 5 years
• 6 years
• 7 years
• 8 years

Tags

TEKS.MATH.6.10A

8)  Jose wants to save money for a house and finds two accounts that pay 3% in interest.  He wants to invest $3000.  He has 2 options to invest his money. Option A is a simple interest account with a time period of 10 years. Option B is a compound interest account with a time period of 12 years.  What would be his account balance in Option B?

• $4,277.28
• $900
• $1,277.28
• $1,080

Tags

TEKS.MATH.2A.5B

TEKS.MATH.A.9C

9)  A simple interest account earns $75 at a rate of 1.5% over the course of 5 years.  What was the principal amount on the account?

• $5 
• $56 
• $100       
• $1,000

Tags

TEKS.MATH.6.7B

10)  A compound interest account has accrued an account balance of $1,159.27 over the course of 5 years.  The interest rate paid was 3%.  Which is closest to the principal amount on the account?

• $1,000 
• $1,300
• $300
• $4,300

Tags

TEKS.MATH.2A.5B

TEKS.MATH.A.9C

12)  How much more interest is earned if $8,500 is invested into an account paying compound interest of 4% for   6 years compared to investing the $8,500 into an account paying simple interest of 4.5% for 5 years? 

• $1,912.50 
• $2,255.21 
• $8,842.71 
• $342.71

Tags

TEKS.MATH.2A.5B

TEKS.MATH.A.9C

David

invests $10,000 in a savings account that pays 3.5% simple interest. If David

makes no withdrawals or deposits to the account, how much will be in the

account after 7 years.

• $2,450

• $11,750

• $12,450

• Not here

Tags

CCSS.HSF.BF.A.2

Garrison

deposited $500 in an account that earns 5% annual interest compounded annually. If he makes no withdrawals or deposits, how

much interest will the account earn after 4 years?

• $600

• $100

• $607.75

• $107.75

Tags

CCSS.HSF.BF.A.2

Jerry borrowed $4,000 for 5 years at 6% simple interest rate. How much interest is that?

• $800
• $1,000
• $1,200
• $1,500

Tags

CCSS.7.RP.A.3