Simple and Compound Interest Practice
Match the correct variable to it's definition
| Draggable item | arrow_right_alt | Corresponding Item |
|---|---|---|
r | arrow_right_alt | Amount in the account |
t | arrow_right_alt | Principal |
P | arrow_right_alt | rate (as a decimal) |
I | arrow_right_alt | time (in years) |
A | arrow_right_alt | Interest |
You get a student loan from the Texas Educational Assistance Foundation to pay for your educational expenses this year. Find the simple interest on the loan if you borrowed $2,000 at 8% for 1 year.
You are starting your own small business in Plano. You borrow $10,000 from the bank at a 9% rate for 5 years. Find the simple interest you will pay on this loan.
Find the simple interest on a loan of $2500 that is borrowed at 9% for 6 months
Find the amount of time that has passed on a loan if the total interest you have earned is $1500, the starting amount was $10000 and the percentage rate of 5%.
At the time of her grandson's birth, a grandmother deposits $5,000 in an account that pays 5% compounded annually. What will be the value of the account at the child's twenty-fifth birthday, assuming that no other deposits or withdrawals are made during this period? Round your answer to the nearest dollar.
Jim Clark borrowed $20,000 from a friendly credit union to buy a car at 5.5% interest per year compounded monthly for 60 months. What is the INTEREST amount gained? Round your answer to 2 decimals places.
A customer will borrow $12,000 to buy a car. Which loan option would allow the customer to pay the least amount of interest?
A student's parents invested $5,000 in a college savings account that pays 4.85% annual simple interest. No additional deposits or withdrawals will be made.
Which amount is closest to the interest earned on the account at the end of 15 years?
Ben deposits $1750 into each of two savings accounts.
1. Account 1 earns 2.75% annual simple interest.
2. Account 2 earns 2.75% interest compounded annually
Ben does not make any additional deposits or withdrawals. Which amount is closest to the difference between the interest Ben will earn in Account 1 and the interest Ben will earn in Account 2 at the end of 2 years.