Simple and Compound Interest

How do you write 23% as a decimal?

• 23.0

• 2.3

• 0.23

• 0.023

How do you write 5% as a decimal?

• 5.0

• 0.5

• 0.05

• 0.005

What is 5.6% written as a decimal?

• 5.6

• 0.56

• 0.056

• 0.0056

Christine takes out a 4-year simple interest car loan for $15000 at a 3% interest rate. Is she does not make any payments, how much interest will she owe at the end of 4 years?

• $1800

• $18000

• $16800

• $33000

Greg takes out a 4-year simple interest car loan for $15000 at a 3% interest rate. Is he does not make any payments, how much total money will he owe at the end of 4 years?

• $1800

• $18000

• $16800

• $33000

Aiydan puts $5000 into a savings account with a 3% interest rate. The interest compounds yearly. How much money will he have in his account after 8 years?

• $150

• $5300

• $6333.85

• $40786.54

Sara takes out a $30000 loan for her new Honda Civic. She will pay back the entire loan at the end of 8 years. It is a compound interest loan with an interest rate of 7.25%. How much will she have to pay at the end of 8 years?

• $17400.00

• $30725.00

• $52516.97

• $2351982.31

If everything else is the same, which is better for the lender, a simple interest loan or a compound interest loan?

• Simple Interest

• Compound Interest

• They are the same.

If everthing else is the same, which is better for the borrower, a simple interest loan or a compound interest loan?

• Simple interest

• Compound interest

• They are the same.

Mr. Wilkins deposited $2,500 in a new account at his bank.
       *The bank pays 6.5% interest compounded annually on this account.
       *Mr. Wilkins makes no additional deposits or withdrawals.
Which amount is closest to the balance of the account at the end of 2 years?

• $2,835.56
• $2,513.00
• $2,662.50
• $2,825.00