7.7 Practice - Simple & Compound Interest

When calculating

interest, how do you write the percent?

• a fraction

• a decimal

• a round number

• not enough information

The simple interest formula is I=Prt. What does the t represent?

• Principle

• Interest

• Time

• Percent Rate

What does the "I" in the interest formula stand for?

• Important
• Interest
• Internet
• Igloo

A bank is offering 7% annual compound interest on a savings account.  If you deposit $1,500, what will be the total amount of money in your savings account after three years?

• $337.56
• $1837.56
• $31500
• $30000

The rate is given as a percent (%).  Before using it in the simple interest formula, you must first convert it to a______.

• fraction
• decimal
• ratio
• dollar amount

A bank is offering 2.5% simple interest on a savings account.  If you deposit $5,000, how much interest will you earn in three years?

• $5375
• $375
• $37500
• $42500

Sarah borrowed $18,000 for 4 years at an annual simple interest rate of 7%.  How much interest will she pay at the end of the 4 years?

• $5040
• $23040
• $504000
• $18000

Paul deposits $4000 in a bank which pays a compound interest rate of 4% per year. How much will he have in 5 years.

• $4866.61

• $5628.40

• $6077.53

• $6326.60

What is the formula for simple interest?

• A=P(1+r)^t
• I=Prt
• I=P(1+r)t
• A=Prt

Ann puts $300 in a bank account earning 4% interest.  How much will she earn in interest in 1 year?

• 4
• 8
• 12
• 16