Saving for College/Simple & Compound Interest

Which is the correct formula for simple interest?

• $I\ =\Pr t$

• $A\ =\ P\left(1+r\right)^t$

• $I\ =\ A\ -\ P$

• $A\ =I\ +\ P$

Which is the correct formula for compound interest?

• $I\ =\Pr t$

• $A\ =\ P\left(1+r\right)^t$

• $I\ =\ A\ -\ P$

• $A\ =I\ +\ P$

Which is the correct formula to find the total amount after finding the simple interest? 

• $I\ =\Pr t$

• $A\ =\ P\left(1+r\right)^t$

• $I\ =\ A\ -\ P$

• $A\ =I\ +\ P$

Which is the correct formula to find the interest after finding the total amount? 

• $I\ =\Pr t$

• $A\ =\ P\left(1+r\right)^t$

• $I\ =\ A\ -\ P$

• $A\ =I\ +\ P$

The rate is always calculated as a...

• fraction

• decimal

• whole number

• percentage

The time is always calculated in...

• days

• weeks

• months

• years

Donahue invests $25,000 in a savings account that pays 9% simple interest. How much interest does he earn each year?

Miracle invests $10,000 in a savings account that pays 4.75% simple interest. If Miracle makes no withdrawals or deposits to the account, how much will be in the account after 8 years?

RJ deposited $5,000 in an account that earns 18% interest compounded annually. If he makes no withdrawals or deposits, how much interest will the account earn after 48 months?

Destyni deposited $2,800 in a savings account that pays 2.65% interest compounded annually. What is the total value of the account after seven years?