Simple Interest Assignment

In January of 2003, Gerry opened a savings account that paid 3.25% annual interest. His initial deposit was $1,100. If Gerry didn't deposit or withdraw any additional money, what was his balance at the end of December, 2012?

$1,457.50

Find the total balance of each investment account earning simple annual interest. A: $624 at 5% for 3 years B: $4,120 at 7% for 18 months C: $900 at 3.1% for 6 months D: $275 at 4.8% for 8 years

$717.60 $4,552.60 $913.95 $380.60

Find the total amount of interest earned on this savings account. Time: 7 years Interest Rate: 2.5% Principal: $4,556 Interest:

$797.30

Donna put $450 into a 6-month certificate of deposit that earns 4.6% simple annual interest. How much interest did the certificate earn?

10.35

Juanita borrowed $600 to purchase a new computer. She was charged 7% interest for two years. How much interest will Juanita pay? Juanita will pay $ ⇒ 84 interest.

84

Michelle wants to borrow $4,500. Bank A will lend Michelle the money at a simple annual interest rate of 9% for 6 years. Bank B will lend her the money at 11% for 4 years. Which bank would charge Michelle the least amount of interest? Explain.

:Michelle needs to calculate the interest for the length of each loan. Bank A will charge $2430 in interest and Bank B will charge $1980 in interest. She will save by borrowing from Bank B.

Juanita borrowed $600 to purchase a new computer. She was charged 7% interest for two years. She used the simple interest formula to find the interest. I = 600(7)(2) What error did Juanita make and how will her error affect the interest she calculates? Explain.

Juanita did not change the 7% to the decimal 0.07. When she completes the problem as written, the interest will be greater than the money she borrowed.

One year ago, Lindsey deposited $250 into a savings account. Her balance is now $253. Two years ago, Jenn deposited $250 into a savings account. Her balance is now $257.50. Which account has the greater simple interest rate? Explain.

Lindsay's interest is $3 for one year. Using the formula for interest, I = prt, Lindsey's money is earning at a rate of 1.2%. Jenn has earned $3.75 for one year. Her money is earning at a rate of 1.5%, which is a higher interest rate.

Juanita borrowed $600 to purchase a new computer. She was charged 7% interest for two years. The amount of money Juanita borrowed is called the .

princpal