Simple Interest

Henry and Walter open savings accounts at the same time. Henry invests $6,500 at 4.54% simple interest, and Walter invests $7,100 at 4.74% simple interest. After eight years, how much more interest has Walter earned than Henry? a. $331.52 b. $420.67 c. $631.52 d. $719.59

A

In the formula I=P·r·t, what does r stand for? a. Rate: the percent that interest is paid annually as a decimal b. Ratio: the size of the interest interval compared to time c. Return: how much money you end up earning d. Reserves: how much money you have in the investment

A

Olivia deposits $6,952 in a savings account paying 3.72% interest. To the nearest dollar, how much money does Olivia have in total after sixteen years? a. $4,138 b. $8,568 c. $11,090 d. $29,901

A

Rose and Dennis each open a savings account at the same time. Rose invests $2,600 in an account yielding 4.1% simple interest, and Dennis invests $2200 in an account yielding 5.7% simple interest. After nine years, who has the greater total amount of money, and how much greater is it? a. Rose has $230.80 more than Dennis. b. Rose has $559.40 more than Dennis. c. Dennis has $169.20 more than Rose. d. Dennis has $512.00 more than Rose.

A

Which of the following investments will earn the smallest amount of interest? a. $8,030, invested for 2 years at 2.0% interest b. $1,901, invested for 8 years at 4.0% interest c. $5,330, invested for 6 years at 2.0% interest d. $3,970, invested for 6 years at 4.0% interest

A

Which of the following investments will earn the greatest amount of interest? a. $2,400 invested for 3 years at 5.0% interest b. $1,950 invested for 4 years at 4.0% interest c. $1,600 invested for 8 years at 3.0% interest d. $1,740 invested for 2 years at 8.0% interest

A(?)

If you invest $8,600 at a 3.95% simple annual interest rate, approximately how long will it take for you to have a total of $21,000? a. 25 years b. 36 years c. 45 years d. 60 years

B

If you wish to calculate the interest on an investment with a rate of 6.17%, what number will you plug into your equation? a. 0.00617 b. 0.0617 c. 0.617 d. 6.17

B

Ike invests $7,660 in an account paying 7.27% simple interest annually. How much interest has Ike gained after four years? a. $222.75 b. $2,227.53 c. $1,392.20 d. $13,922.05

B

In the formula I=P·r·t, what does P stand for? a. Percent: the interest rate expressed as a percentage b. Principal: the amount of money you initially invested c. Period: how often the interest is calculated d. Payout: how much money you end up with

B

Trevor has an investment worth $6,774.50. He made his only deposit in it 22 years ago. Given that the investment yields 2.7% simple interest annually, how big was the initial deposit? a. $2,524.50 b. $4,024.03 c. $4,250.00 d. $11,404.88

C

Nicole deposits $2,136 in a savings account paying 5.36% interest. To the nearest dollar, how much money does Nicole have in total after nine years? a. $213 b. $1,030 c. $1,272 d. $3,166

D