Smart Spending: Interest Rates & Price Comparisons

1. Sarah wants to buy a new phone that costs $600. The store offers a payment plan with an interest rate of 5% per year. If she pays it off in 2 years, how much total will she pay for the phone?

• $700

• $600

• $660

• $630

2. A local grocery store sells apples for $2.50 per pound, while a nearby market sells them for $2.00 per pound. If you buy 3 pounds of apples, how much money will you save by shopping at the market?

• $2.00

• $3.00

• $0.50

• $1.50

3. John is considering a savings account that offers 3% interest compounded annually. If he deposits $1,000, how much money will he have in the account after 3 years?

• $1,000.00

• $1,050.00

• $1,200.00

• $1,092.73

4. A car dealership is offering a car for $20,000 with a financing option at an interest rate of 6% for 5 years. What will be the total cost of the car after the financing period?

• $25,000

• $23,199.60

• $22,000

• $21,500

5. Emily finds a pair of shoes for $80 at one store and $70 at another store. If she also has a coupon for 10% off at the first store, where should she buy the shoes to save more money?

• Buy at the first store for $80 without the coupon.

• Buy at the first store for $72 after the coupon.

• Buy at the second store for $70.

• Buy at the second store for $80.

6. A bank offers a loan of $5,000 at an interest rate of 4% for 3 years. How much interest will be paid at the end of the loan period?

• $800

• $1,200

• $600

• $400

7. A restaurant has a special where a meal costs $15, but they charge an additional 18% gratuity. What will be the total cost of the meal including gratuity?

• $16.50

• $17.70

• $18.00

• $19.25

8. Mark is comparing two different credit cards. Card A has a 15% interest rate, while Card B has a 20% interest rate. If he carries a balance of $1,000, how much more interest will he pay with Card B after one year?

• $30

• $50

• $70

• $100

9. A bike costs $300, and a store offers a 25% discount. What is the final price of the bike after applying the discount?

• $225

• $180

• $300

• $250

10. Lisa wants to invest $2,000 in a bond that pays 5% interest annually. How much money will she have after 4 years if she does not withdraw any money?

• 2431.01

• 2200.00

• 2000.00

• 2500.00