Simple Interest

Which of the following investments will earn the greatest amount of interest? a. $1,600 invested for 5 years at 5.0% interest b. $1,600 invested for 4 years at 4.0% interest c. $1,600 invested for 8 years at 1.0% interest d. $1,600 invested for 2 years at 5.5% interest

A $1,600 invested for 5 years at 5.0% interest

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 $4,138

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

A $5,330, invested for 2 years at 2.0% interest

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 Rate: the percent that interest is paid annually as a decimal

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 Rose has $230.80 more than Dennis

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 $2,227.53

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 0.0617

Nate has an account that pays 2.76% simple interest per year and wants to accumulate $3,090 in interest from it over the next 15 years. Which formula represents how much Nate should invest? a. I = 3090*2.76*15 b. 3090=P*.0276*15 c. I=3090*0.0276*15 d. 3090=P*2.76*15

B 3090+P*.0276*15

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 Principal: the amount of money you initally invested

Henry invests $6,500 at 4.54% simple interest for 24 months. What is the correct formula? a. 6,000*4.54*24 b. 6,000*.454*2 c. 6,000*0.045*2 d. 6,000*4.54*2

C 6,000*0.045*2

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 $3,166

Iris has an investment worth $8,813. She made her only deposit in it seven years ago. Given that the investment yields 3.7% simple interest annually, how big was the initial deposit? a. $1,806 b. $2,282 c. $4,095 d. $7,000

D $7,000

Sam invests $9,400 in a fund yielding 5.2% simple interest annually. At the same time, Pat shops around for a better interest rate and invests $9,400 in a fund yielding 6.0% simple interest annually. After seven years, how much more interest has Pat's fund earned than Sam's fund? a. $817.80 b. $3,948.00 c. $652.40 d. $526.40

D 526.40

Which statement about interest is FALSE? a. Interest is earned when saving money. b. Interest is paid when borrowing money. c. Interest is calculated using an interest rate. d. Interest is charged when saving money.

D Interest is charged when saving money