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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
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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Description
Test your knowledge on simple interest calculations through various scenarios, including savings accounts and loan payments. This quiz covers concepts like interest rates, principal amounts, and time periods to calculate total values and monthly payments.
