Simple and Compound Interest
2 years ago
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• Question 1
900 seconds
Q.

Anne deposited \$500 in an

account that earns 6% simple annual interest.

Shelly deposited \$500 in an account that earns 6% annual interest

compounded annually. They leave the

money in the account for 4 years. Which

statement is true about the two investments after 4 years?

Shelly will have \$131.24 more in her account

than Anne has in her account.

They will have the same

amount in their accounts.

Shelly will have \$11.24 more

in her account than Anne has in her account.

Anne will have \$11.24 more in

her account than Shelly has in her account.

• Question 2
300 seconds
Q.

Carly

deposited \$800 in an account that earns 6% compounded annually. Lara deposited

\$800 in an account that earns 6% simple interest. How much will each girl have

in their account at the end of 10 years if they make no withdrawals or deposits?

Carly: \$1432.68 Lara: \$1280

Carly: \$1444.89 Lara: \$1280

Carly: \$1444.89 Lara: \$1320

Carly: \$1432.68 Lara: \$1320

• Question 3
120 seconds
Q.

In some investment accounts interest is computed on interest that has been earned in previous years. What is this method of computing interest called?

compound interest

double interest

simple interest

not enough information

• Question 4
60 seconds
Q.

When calculating

interest, how do you write the percent?

a fraction

a decimal

a round number

not enough information

• Question 5
120 seconds
Q.

Steve deposited

\$5,000 in a savings account that pays 4% interest compounded annually. Which

equation could be used to find the value of the account after 3 years?

A = 5,000(1 + 4)3

A = 5,000(1 + 0.04)3

A = 5,000(1 + 0.4) x 3

A = 5,000(0.04)3

• Question 6
300 seconds
Q.

Heather

invested \$8,000 in a 4-year Certificate of Deposit (CD) that pays 4.1% interest

compounded annually. What is the value of the CD at the end

of the 4 years?

\$9,394.92

\$9,312.00

\$1394.00

\$1312.00

• Question 7
300 seconds
Q.

David

invests \$10,000 in a savings account that pays 3.5% simple interest. If David

makes no withdrawals or deposits to the account, how much will be in the

account after 7 years.

\$2,450

\$11,750

\$12,450

Not here

• Question 8
300 seconds
Q.

Garrison

deposited \$500 in an account that earns 5% annual interest compounded annually. If he makes no withdrawals or deposits, how

much interest will the account earn after 4 years?

\$600

\$100

\$607.75

\$107.75

• Question 9
300 seconds
Q.

Jared

invests \$10,000 in a savings account that pays 3% simple interest. How many years will it take for the account

to grow to \$12,700, if he makes no withdrawals or deposits?

7 years

12 years

9 years

22 years

• Question 10
300 seconds
Q.

Gilberto

invests \$10,000 in a savings account that pays 4.75% simple interest. If Gilberto makes no withdrawals or deposits

to the account, how much will be in the account after 7 years?

\$3,325

\$13,325

\$13,838.16

\$13,000

• Question 11
300 seconds
Q.

Tran

invests \$15,000 in a savings account that pays 4% simple interest. About how many years will it take for the

account to double at this interest rate?

7 years

60 years

25 years

27 years

• Question 12
300 seconds
Q.

Travis

invests \$25,000 in a savings account that pays 2.75% simple interest. How much interest does he earn each year?

\$787.50

\$625

\$657.50

\$687.50

• Question 13
300 seconds
Q.

Audrey deposited \$2,800 in a

savings account that pays 2.65% interest compounded annually. What is the total

value of the account after 7 years?

\$562.57

\$3362.57

\$14,514.15

\$2,569,680

• Question 14
300 seconds
Q.

Sharyce put some money in a savings account that paid 2.7% simple interest. After a year, the account was worth \$7,890.44. What was the amount Sharyce originally deposited?

\$7,200

\$7,683

\$7,500

\$7,700

• Question 15
300 seconds
Q.

Karl used his credit card to buy a 90-inch HD flat-screen TV for \$2,600. The credit card company charges 28% compound interest per year. If Karl made no payments for 2 years, how much would he owe the credit card company?