Simple and Compound Interest Practice

A student's parents invested $5,000 in a college savings account that pays 4.85% annual simple interest. No additional deposits or withdrawals will be made. Which amount is closest to the interest earned on the account at the end of 15 years?

• $5,174.11

• $10,174.11

• $3,637.50

• $8,637.50

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CCSS.HSA.CED.A.1

CCSS.HSA.SSE.A.1

CCSS.HSF.LE.A.1

Mr. Jenkins deposited $1,250 into an account. He made no additional deposits or withdrawals. Mr. Jenkins earned 4.25% annual simple interest on the money in the account. What was the balance in dollars and cents in Mr. Jenkins's account at the end of 4 years?

• $1,476.43

• $226.43

• $212.50

• $1,462.50

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.SSE.A.1

An employee put $5,000.00 in a retirement account that offers 9% interest compounded annually. The employee makes no additional deposits or withdrawals. Which amount is closest to the interest the employee will have earned at the end of 5 years?

• $229.09

• $450.00

• $2,250.00

• $2,693.12

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CCSS.HSA.CED.A.1

CCSS.HSF.BF.A.1

CCSS.HSF.LE.A.1

CCSS.HSF.LE.A.2

An investor puts $2,500 into a life insurance policy that pays 8.5% simple annual interest. If no additional investment is made into the policy, how much accumulated interest should the investor expect at the end of 10 years?

• $21,250.00

• $2,125.00

• $212.50

• $21.25

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.SSE.A.1

Mr. and Mrs. Steele deposited $8,000 to open a college savings account for their granddaughter on the day she was born. The account pays 5% simple interest annually. If they made no other deposits or withdrawals since then, how much money would be in the account after 18 years?

• $7,200

• $8,000

• $15,200

• $19,253

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.REI.B.3

CCSS.HSA.SSE.A.1

Michelle has a balance of $950 in a savings account that pays 3% interest compounded annually. If Michelle makes no deposits or withdrawals, how much money will be in her savings account after 2 years?

• $954.81

• $1,004.00

• $1,007.00

• $1,007.86

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.SSE.A.1

CCSS.HSF.LE.A.1

CCSS.HSF.LE.A.2

Brady deposited $600 into a new savings account that earns 2.5% simple interest. If Brady makes no other deposits or withdrawals, how much interest will the account have earned after 5 years?

• $15

• $70

• $75

• $125

Tags

CCSS.HSA.REI.B.3

CCSS.HSA.SSE.A.1

CCSS.HSF.LE.A.1

The current balance in Marianne's savings account is $525. The account pays 3.5% compounded annually. If she makes no deposits or withdrawals for the next 4 years, her savings account balance will be-

• $588.00

• $590.89

• $598.50

• $602.45

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.SSE.A.1

CCSS.HSF.BF.A.1

CCSS.HSF.BF.A.2

CCSS.HSF.LE.A.1

CCSS.HSF.LE.A.2

• $96.25

• $1.32

• $97.57

• $193.82

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.SSE.A.1

• $672.13

• $695.00

• $694.25

• $694.51

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.CED.A.2

CCSS.HSA.SSE.A.1