Simple and Compound Interest Test Review

Yessica’s grandparents gave her $8000 for college to put in a savings account until she starts college in six years. Her grandparents agreed to pay her an additional 7.35% simple interest on the $8000 for every year. How much extra money will her grandparents give her at the end of six years?

• $3,528

• $35.280

• $12243.41

• $4243.41

Landen read an ad offering 6.75% simple interest on accounts over $1,200 left for a minimum of 7 years. He has $1,200 and thinks this sounds like a great deal. How much money will he earn in the 7 years? What is the total amount of money he will have in 7 years?

• Landen will earn $450 in interest, and the total amount he will have in 7 years is $1650.
• Landen will earn $300 in interest, and the total amount he will have in 7 years is $1500.
• Landen will earn $700 in interest, and the total amount he will have in 7 years is $1900.
• Landen will earn $567 in interest, and the total amount he will have in 7 years is $1767.

Jalen opens a savings account by depositing $2500 in an account that earns 3.15% interest compounded weekly. How much will his investment be worth in 12 years? Assume there are exactly 52 weeks in a year and round your answer to the nearest cent.

• $108298.11

• $945

• $30959.75

• $3647.99

Mr. and Mrs. Davis bought a house for $146,000 in 2009. Real estate values in their area increase approximately 4.6% each year. What was the value of the house in 2025?

• $299,819.45

• $449,412.32

• $29,981.95

• $253,456

Natalie invests $8,100 in a savings account with a fixed annual interest rate of 9% compounded continuously. What will the account balance be after 8 years?

• $16,640.91

• $10,849,389.19

• $2,996,315.88

• $176,144.66

PNC Bank is offering 5.1% interest on an account. Jalissa makes an initial deposit of $28,000. Calculate the interest earned over 12 years if the bank calculates if the interest is compounded annually.

• $3,906,426.16

• $17,136

• $22,861.67

• $50,861.67

PNC Bank is offering 5.1% interest on an account. Jalissa makes an initial deposit of $28,000. Calculate the interest earned over 12 years if the bank calculates the interest using compound interest compounded semi-annually.

• $75,755.82

• $51,240.57

• $23,240.57

• $47,755.82

PNC Bank is offering 5.1% interest on an account. Jalissa makes an initial deposit of $28,000. Calculate the interest earned over 12 years if the bank calculates the interest using compound interest compounded quarterly.

• $23435.87

• $102,390.23

• $321016.56

• $51435.87

PNC Bank is offering 5.1% interest on an account. Jalissa makes an initial deposit of $28,000. Calculate the interest earned over 12 years if the bank calculates the interest using compound interest compounded monthly.

• $325542.28

• $28000

• $51568.32

• $23,568.33

PNC Bank is offering 5.1% interest on an account. Jalissa makes an initial deposit of $28,000. Calculate the interest earned over 12 years if the bank calculates the interest using compound interest compounded continuously.

• $12,708,211.45

• $325,580.49

• $51,635.24

• $23635.25