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- 1. Multiple ChoiceThe simple interest formula is I=Prt. The P represents the principle. The principle is ___________________.the amount of money borrowed or depositedthe percent interest for his yearthe amount taxedthe amount the bank owes you for being a customer at their bank
- 2. Multiple ChoiceBrenda wants to buy a sweater that is regularly priced at $27. She can apply one of two coupons, $5 off and 25% off. Which should she choose? Justify your answer.Brenda should take the $5 off coupon because she will only pay $24Brenda should take the 25% off because the discount will be $6.25Brenda should take the $5 off because the new price will be $22.Brenda should take the 25% off because the new price will be $20.25
- 3. Multiple ChoiceLeroy borrowed $1500 at an annual simple interest rate of 12%. He paid $270 in interest. For what time period did Leroy borrow the money?8 years0.015 years18 months18 years
- 4. Multiple ChoiceCaiden earned $475 from mowing lawns last summer. He deposited this money in an account that pays an interest rate of 3.8% compounded annually. What will be his balance after 15 years?$827.52$831.10$839.45$846.80
- 5. Multiple ChoiceTo earn as much interest as possible, you should open a savings account that earns ______ interest and has the _____ interest rate.compound; lowestcompound; highestsimple; lowestsimple; highest
- 6. Multiple ChoiceRiley invested $1,000 in savings bonds. If the bonds earn 6.75% interest compounded semi-annually, how much total will Riley earn in 15 years?$1,584.62$2,651.39$2,706.86$1,825.10
- 7. Multiple ChoiceBeyonce went to the mall and saw a massage chair that she would have to take a loan out for $6500 to purchase. The bank said that she could get a simple interest rate of 8% for 5 years. What is the total amount that Beyonce will pay for the chair?$2600$910$9100$260
- 8. Multiple ChoiceCaiden earned $475 from mowing lawns last summer. He deposited this money in an account that pays an interest rate of 3.8% compounded monthly. What will be his balance after 15 years?$827.52$839.17$839.45$846.80
- 9. Multiple ChoiceInterest can be defined as:a charge for lending moneythe amount owed for borrowing moneythe amount added into your savings account when opening a bank accounta charge for convenience of accessing money in your bank
- 10. Multiple Choice5. Describe the difference between simple interest and compound interest?Simple Interest is applied yearly and compound interest is applied quarterly.Simple interest is less than 10% and Compound interest is above 10%.Compound Interest is calculated only on the principal amount of a loan. Simple Interest is calculated on the principal amount and also on the accumulated interest of previous periods, and can thus be regarded as “interest on interest.”Simple Interest is calculated only on the principal amount of a loan. Compound Interest is calculated on the principal amount and also on the accumulated interest of previous periods, and can thus be regarded as “interest on interest.”
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