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- 1. Multiple Choice
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.
- 2. Multiple Choice
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
- 3. Multiple Choice
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
- 4. Multiple Choice
When calculating
interest, how do you write the percent?
a fraction
a decimal
a round number
not enough information
- 5. Multiple Choice
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
- 6. Multiple Choice
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
- 7. Multiple Choice
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
- 8. Multiple Choice
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
- 9. Multiple Choice
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
- 10. Multiple Choice
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
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