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Questions and Answers
Tyler's savings account pays a simple annual interest rate of 3.25%. Suppose he deposits $5,000 in the account and makes no additional deposits or withdrawals for 3 years. What will the total value of the account be after 3 years?
Tyler's savings account pays a simple annual interest rate of 3.25%. Suppose he deposits $5,000 in the account and makes no additional deposits or withdrawals for 3 years. What will the total value of the account be after 3 years?
$5,487.50
Indicate the correct amount of simple interest earned in the savings account descriptions by placing and X in the correct cell in the table below.
Indicate the correct amount of simple interest earned in the savings account descriptions by placing and X in the correct cell in the table below.
principal: $3,200, rate: 2%, time: 4 years = $256 principal: $1,950, rate: 3.5%, time: 4 years = $270 principal: $2,400, rate: 2.25%, time: 5 years = $273
Jarvis is buying a boat that costs $6,000. The interest rate is 5.75% per year. What is his monthly payment if it takes him four years to repay the loan?
Jarvis is buying a boat that costs $6,000. The interest rate is 5.75% per year. What is his monthly payment if it takes him four years to repay the loan?
$153.75
Flashcards
Simple Interest Formula
Simple Interest Formula
The formula used to calculate simple interest earned over a period of time. It is calculated by multiplying the principal amount, interest rate, and time.
Principal
Principal
The initial amount of money deposited or borrowed.
Interest Rate
Interest Rate
The percentage charged or earned on the principal amount.
Time
Time
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Markup
Markup
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Discount
Discount
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Sales Tax
Sales Tax
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Tip
Tip
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Percent of Change
Percent of Change
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Study Notes
Simple Interest
- Tyler's savings account pays a simple annual interest rate of 3.25%. Suppose he deposits $5,000 in the account and makes no additional deposits or withdrawals for 3 years. What will the total value of the account be after 3 years?
- I = 5000(0.0325)(3)
- I = 487.5
- 5000 + 487.5 = $5487.50
Simple Interest Table
- Indicate the correct amount of simple interest earned in the savings account descriptions by placing and X in the correct cell in the table below.
- principal: $3,200, rate: 2%, time: 4 years → $266
- principal: $1,950, rate: 3.5%, time: 4 years → $270
- principal: $2,400, rate: 2.25%, time: 5 years → $273
Simple Interest Application
- Jarvis is buying a boat that costs $6,000. The interest rate is 5.75% per year. What is his monthly payment if it takes him four years to repay the loan?
- I = 6000(0.0575)(4)
- I = 1380
- 6000 + 1380 = 7380
- 7380 ÷ 48 = $153.75/month
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