Simple and Compound Interest
2 years ago
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15 QuestionsShow answers
  • 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?

    answer choices

    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?

    answer choices

    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?

    answer choices

    compound interest

    double interest

    simple interest

    not enough information

  • Question 4
    60 seconds
    Q.

    When calculating

    interest, how do you write the percent?

    answer choices

    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?

    answer choices

    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?

    answer choices

    $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.

    answer choices

    $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?

    answer choices

    $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?

    answer choices

    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?

    answer choices

    $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?

    answer choices

    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?

    answer choices

    $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?

    answer choices

    $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?

    answer choices

    $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?

    answer choices

    $5,069.84

    $4,772.18

    $4,259.84

    $4,056.00

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