Simple Interest
Find the amount of interest earned on a savings account with an initial deposit of $400, simple interest rate of 5.4%, and is open for 7 years.
The interest earned (I) is $151.20
Find the amount that will be in the account for a savings account with an initial deposit of $7000, compounded annually interest rate of 1.5%, and is open for 20 years.
The amount that will be in the account (A) is $2,427.99
Ms. Wilis opens a simple savings account with an initial deposit of $3,250. She keeps the account open for 5 years and has an interest earned of $390.
What is the interest rate of the account?
4%
Mistake Question 1
Used simple formula instead of compound formula.
Find the total balance of a simple interest loan of $5,000 after 4 years if the interest rate is 2.4%.
The total balance (A) is $5,480
Find the amount of interest earned on a savings account with an initial deposit of $3000, compounded annually interest rate of 2.5%, and is open for 10 years.
The interest earned (I) is $840.25
You decide to take out a loan of $4,500 to pay for a new computer. The loan earns simple interest at a rate of 4.5% and ends with an account balance of $6,120.
For how long was the loan kept open?
8 years
Mistake Question 2
Did not find the account balance. The answer is only the interest earned.
Find the amount of interest earned on a savings account with an initial deposit of $3,500, simple interest rate of 11%, and is open for 2 years.
The interest earned (I) is $770.
Find the amount that will be in the account for a savings account with an initial deposit of $12,500, compounded annually interest rate of 2%, and is open for 15 years.
The amount that will be in the account (A) is $16,823.35
Raul needs to fix his car so he takes out a loan for $2,250 from his bank. The loan has a simple interest rate of 3.2% and earns $216 of interest.
For how long was the loan kept open?
3 years
Mistake Question 3
The total balance of the two accounts is found by adding the account balances (A) of each. Their answer is only the balance of Account 1.
Find the total balance of a simple interest loan of $730 after 6 years if the interest rate is 1.5%.
The total balance (A) is $795.70
Find the amount of interest earned on a savings account with an initial deposit of $11,000, compounded annually interest rate of 3.75%, and is open for 8 years.
The interest earned (I) is $3,767.18
Trevor opens a simple savings account with an initial deposit of $9,350. After 8 years, the account balance is $16,680.40.
What is the interest rate of the account?
9.8%
Mistake Question 4