8.12D Simple Vs Compound Interest Review

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Whould simple interest or comound interest generate more money?

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How much more interest would compound interest earn over simple interest?

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Complete the calculations. Which account earns less interest? How much less?

1

Compare the balances. How much more will compound interest earn than simple interest?

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Which one is true?

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Donnie will deposit $1,500 in an account that earns 4% simple interest annually.
His brother Ronnie will deposit $1,600 in an account that earns 6% interest compounded annually.

The deposits will be made on the same day, and no additional money will be deposited or withdrawn from the accounts. Which statement about the balances of Donnie’s and Ronnie’s account at the end of 3 years is true?

A. Donnie’s account will have about $21.52 more than Ronnie’s account.
B. Donnie’s account will have about $125.63 more than Ronnie’s account.
C. Ronnie’s account will have about $21.52 more than Donnie’s account.
D. Ronnie’s account will have about $125.63 more than Donnie’s account.

1

Damarcus deposits $1,700 into each of two savings accounts.
Account 1 earns 3% annual simple interest.
Account 2 earns 3% interest compounded annually.
Damarcus does not make any additional deposits or withdrawals. What is the sum of the balances of Account 1 and Account 2 at the end of 4 years?

A. $3664.36
B. $1913.36
C. $3817.36
D. $2117.36

IXL Practice
Simple Interest: https://www.ixl.com/math/grade-8/simple-interest
Compound Interest: https://www.ixl.com/math/grade-8/compound-interest

Mr. Antoine's GRADED DOL
Today's DOL will be on All in Learning. You will need your calculators (scientific calculator - https://bit.ly/2FHRXac) but the TI nSpire is preferred.

Here is the link:

8.12D Simple Vs Compound Interest Review

Whould simple interest or comound interest generate more money?

How much more interest would compound interest earn over simple interest?

Complete the calculations. Which account earns less interest? How much less?

Compare the balances. How much more will compound interest earn than simple interest?

Which one is true?

IXL Practice

Mr. Antoine's GRADED DOL

The simple interest formula finds which on the following?

Whould simple interest or comound interest generate more money?

How much more interest would compound interest earn over simple interest?

To the left there are two savings accounts earning interest on the same principal, rate and time. Caclulate the balance on both accounts after 10 years.

Complete the calculations. Which account earns less interest? How much less?

Compare the balances. How much more will compound interest earn than simple interest?

Which loan produced less interest, and by how much?

Which one is true?

IXL Practice

Mr. Antoine's GRADED DOL

The simple interest formula finds which on the following?

To the left there are two savings accounts earning interest on the same principal, rate and time. Caclulate the balance on both accounts after 10 years.

Which loan produced less interest, and by how much?