Simple and Compound Interest

What does P stands for in the simple interest formula ?

• percent
• partner
• principle

• principal

The simple interest formula is as shown.  The P represents the Principal Amount.  

The Principal Amount 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

The compound interest formula is as shown.

 

The A represents the ___________________. 

• the amount of money borrowed or deposited

• the amount taxed
• the interest amount accumulated at end of of n times computation

• the total amount accumulated at end of of n times computation

To earn as much interest as possible, you should open a savings account that earns ______ interest and has the _____ interest rate.

• compound; lowest
• simple ; lowest
• compound ; highest
• simple ; highest

Ann puts $300 in a bank account earning 4% per annum simple interest.  

How much interest will she earn in 3 years?

• 4

• 12

• 36

• 336

Joe places $4000 in a bank for 7 years.

The bank offers an interest of 4% per annum compounded yearly.

What is the value for n I would use to compute the total amount Joe will get after 7 years?

• n = 1

• n = 7

• n = 14

• n = 28

Joe places $4000 in a bank for 7 years.

The bank offers an interest of 4% per annum compounded yearly.

What is the value for r I would use to compute the total amount Joe will get after 7 years?

• r = 4

Joe places $4000 in a bank for 7 years.

The bank offers an interest of 4% per annum compounded yearly.

Find the total amount Joe will get after 7 years?

Correct your answer to the nearest cent.

You only need to type in the numerals.

Nick places $5000 in a bank for 6 years.

The bank offers an interest of 3% per annum compounded half-yearly.

What is the value for n I would use to compute the total amount Nick will get after 6 years?

• n = 6

• n = 2

• n = 12

• n=18

Nick places $5000 in a bank for 6 years.

The bank offers an interest of 3% per annum compounded half-yearly.

What is the value for r I would use to compute the total amount Nick will get after 6 years?

• r = 3