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- 1. Multiple ChoiceTo earn as much interest as possible, you should open a savings account that earns ______ interest and has the _____ interest rate.compound; lowestsimple ; lowestcompound ; highestsimple ; highest
- 2. Multiple ChoiceJohn just opened a savings account and wants to maximize the amount of interest he earns. Which of the following actions enable him to earn MORE interest?selecting an account with a higher interest rateleaving his money in the account for a long period of timetransferring money into his checking account each monthhigher interest rate AND leaving money in for a longer time
- 3. Multiple Choice
Write the percent as a decimal.
4.3%4.3.43.0434300 - 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 year?$827.52$831.10$839.45$846.80
- 5. Multiple Choice
The compound interest formula is:
A = P(1 + r)t
What does the A represent?
The amount of interest earned.
The amount of time that has passed.
The total amount of money after a certain amount of time.
The amount required to invest.
- 6. Multiple Choice
If $1,000 is invested at 16% interest, compounded annually, for five years, what is the ending balance?
$1,225,54
$2,100.34
$22,255.40
$225.54
- 7. Multiple Choice
the time has to be in _____________
years
months
days
seconds
- 8. Multiple Choice
The A means ____________ in compound interest
annual
amount in account
answer
accrued debt
- 9. Multiple Choice
interest is _________
extra money paid for borrowing
interesting
Flocabulary songs
time times rate
- 10. Multiple ChoiceFind the total amount in the account to the nearest cent if the interest is compounded annually.
$2750 at 8% for 2 years$220$440$660 - 11. Multiple ChoiceYour 3 year investment of $20,000 received 5.2% interest compounded annually. What is your total return?$23,285.05$3,285.05$2,385$32,285
- 12. Multiple ChoiceYou borrowed $59,000 for 2 years at 11% which was compounded annually. What total will you pay back?$13,693.90$1,363.90$72,693.90$73,793.90
- 13. Multiple ChoiceYou borrowed $1,690 for 5 1/2 years at an interest of 5.7% compounded annually. How much extra did you pay by taking out the loan?$602.45$2,292.45$1,87.55$3,982.45
- Answer choicesTagsAnswer choicesTags