8th STAAR 12d(calculating simple and compound interest)

Monica wants to open a savings account with a deposit of $3,000. Monica will not make any additional deposits or withdrawals after she opens the account. Her bank offers two different savings accounts.

- Account X pays 2.1% simple interest.

- Account Y pays 2.4% interest compounded annually.

Which statement about these accounts at the end of 5 years is true?

• Account X would earn Monica about $62.70 more interest than Account Y.

• Account Y would earn Monica about $62.70 more interest than Account X.

• Account X would earn Monica about $45.00 more interest than Account Y.

• Account Y would earn Monica about $45.00 more interest than Account X.

Larry put $1,287 into a savings account 8 years ago.

- The account earned 4% simple annual interest.

- He made no additional deposits or withdrawals.

Based on this information, what is the balance in dollars and cents in Larry's account at the end of these 8 years?

(just the number; don't put the $)

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

Ben deposits $1,750 into each of two savings accounts.

- Account 1 earns 2.75% annual simple interest.

- Account 2 earns 2.75% interest compounded annually.

Which account is closest to the difference between the interest Ben will earn in Account 1 and the interest Ben will earn in Account 2 at the end of 2 years?

• $96.25

• $1.32

• $97.57

• $193.82

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. Jenkin's account at the end of 4 years?

(don't put the $)

Gabe deposits $2,500 into each of two savings accounts.

- Account A earns 4% annual simple interest.

- Account B earns 4% interest compounded annually.

Gabriel does not make any additional deposits or withdrawals. What is the sum of the balances of Account A and Account B at the end of 3 years?

• $5,600.00

• $5,612.16

• $5,624.32

• $5,200.00

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

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

Mr. Wilkins deposited $2,500 in a new account at his bank.

- The bank pays 6.5% interest compounded annually on this account.

- Mr. Wilkins makes no additional deposits or withdrawals.

Which amount is closest to the balance of the account at the end of 2 years?

• $2,835.56

• $2,513.00

• $2,662.50

• $2,825.00

Tamara invested $15,000 in an account that pays 4% annual simple interest.

Tamara will not make any additional deposits or withdrawals.

How much interest will Tamara earn on her investment at the end of 3 years?

• $1,800

• $600

• $450

• $1,873