Unit 2 Review - Interest and Equations

Sarah deposits $2,000 into a savings account that earns a simple interest rate of 5% per year. How much interest will she earn after 3 years?

• $150

• $200

• $300

• $100

John takes out a loan of $1,500 at a simple interest rate of 4% per year. How much in total will he have to pay back after 5 years?

• $1,700

• $1,500

• $1,650

• $1,800

Emily invests $1,000 in an account that pays an annual compound interest rate of 6%. How much money will she have in the account after 4 years?

• $1,262.48

• $1,240.00

• $1,200.00

• $1,180.00

Michael deposits $2,500 in a bank account that offers a compound interest rate of 5% per year, compounded annually. How much interest will be earned after 3 years?

• $394.06

• $2894.06

• $5394.06

• $325.06

What does P represent in the interest formula?

• Time

• Interest rate

• Principal amount

• Total amount

What does R represent?

• Interest rate

• Principal amount

• Time period

• Total amount

What does T represent?

• Interest amount

• Time period

• Interest rate

• Total amount

What does A represent?

• Total amount

• Principal amount

• Interest rate

• Time period

What is the solution to the equation 3x + 4 = 5x - 18?

• x = -11

• x = 11

• x = 7

• x = -7

What is the solution to the equation 4x - 2 = 2x + 8?

• x = -3

• x = 3

• x = -5

• x = 5