Study

Simple & Compound Interest

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  • Emilio borrows $1200 from a bank with 8% simple interest per year. How much will he have to pay back total in 2 years?
    $1392
  • What does r stand for?
    Interest Rate
  • Would you rather start with a penny and double your money daily for 30 days or have $1 million?
    Penny
  • Formula for _____________ ______________ is A = P(1+r)^t
    Compound Interest
  • What is the principle amount of a loan that has accumulated $480 in simple interest rate of 3% after 4 years?
    $4000
  • Formula for _____________ ______________ is I = Prt
    Simple Interest
  • Bridget put $450 into a savings account that earns 8% simple interest. How much will be in the account after 7 years?
    $702
  • Erika takes out a loan for $6,500 and will need to pay back 3% simple interest. How much interest will she need to pay after 5 years?
    $975
  • What does t stand for?
    Time (in years)
  • Calculate the compound interest of the following situation: $43,800 at 4.8% for 2 years
    $48105.72
  • What does the formula for compound interest solve for?
    Principle + Interest
  • What does I stand for?
    Interest (Amount)
  • Calculate the compound interest of the following situation: $34,100 at 3% for 3 years
    $37261.99
  • What does A stand for?
    Total Amount
  • Ms. Perez wants to invest $30,000 into an account that compounds annually. The interest rate at this bank is 2.8%. How much money will be in the account after 3 years?
    $32591.22
  • Find the total amount in the account to the nearest cent if the interest is compounded annually. $2750 at 8% for 2 years.
    $3207.60
  • What does P stand for?
    Principle (beginning amount)
  • What does the formula for simple interest solve for?
    Interest
  • Drake puts $300 into an account to use for school expenses. The account earns 4% interest, compounded annually. How much interest will he earn after 2 years?
    $24.48
  • Dan borrowed $2,000 for 1 year at 12% annual simple interest rate. How much interest is that?
    $240