Simple Interest 1
Maya deposits $200 in a savings account with a 2% simple interest rate. How much interest will she earn after 1 year?
$4
Account A earns 2.5% simple interest annually. Account B earns 4% simple interest annually. You deposit $2,000 into each account for 3 years. How much more interest does Account B earn than Account A?
Account B earns $90 more interest than Account A.
You deposit $1,000 into a savings account with an annual interest rate of 5%, compounded annually. How much money will you have after 2 years?
$1,102.50
Account A offers 2.5% interest compounded annually, and Account B offers 3% interest compounded annually. You deposit $3,000 into each account for 2 years. How much more money does Account B earn than Account A?
Account B earns $30.82 more than Account A.
Lily is saving $2,000 for a vacation. She has two options for a savings account:
Option 1: A simple interest account that earns 4% annually.Option 2: A compound interest account that earns 3.5% annually.
If she plans to save for 2 years, which account will give her more money at the end of the period?
Simple Interest
Lily deposits $300 in a savings account with a 3% simple interest rate per year. How much interest will she earn if she keeps the money in the account for 2 years?
$18
You want to borrow $4,000. Bank X offers 5% simple interest annually for 4 years. Bank Y offers 6% simple interest annually for 3 years. Which loan results in less total interest, and by how much?
Bank Y results in $80 less interest paid than Bank X.
An account offers 4% annual interest compounded annually. You invest $2,500 into the account for 3 years. How much money you have?
$2,812.16
You invest $8,000 in two accounts:
Plan A: 3% annual interest compounded annually for 3 years. Plan B: 4% annual interest compounded annually for 3 years.
Which plan earns more, and by how much?
Plan B earns $257.09 more than Plan A.
David sets aside $800 in a fund for car maintenance. He has two choices:
Option 1: A simple interest account that earns 5% annually. Option 2: A compound interest account that earns 4.5% annually.
Which account will give him more money after 4 years?
Simple Interest
Max deposits $800 in a savings account that earns 4% simple interest per year. How much interest will he have earned if he leaves his money in the account for 3 years?
$96
You invest $6,000 into two accounts:
Account A: 3% simple interest annually for 5 years. Account B: 4.5% simple interest annually for 4 years.
Which account earns more interest, and by how much?
Account B earns $180 more interest than Account A.
You deposit $5,000 into an account with an annual interest rate of 6%, compounded annually. How much interest will you earn after 4 years?
$1,312.39
Account A offers 4% interest compounded annually, and Account B offers 5% interest compounded annually. You invest $10,000 in each account for 5 years. How much more money does Account B earn than Account A?
Account B earns $596.29 more than Account A.
Sophia is building her emergency savings. She deposits $1,500 into an account with two possible options:
Option 1: A simple interest account that earns 6% annually. Option 2: A compound interest account that earns 5.8% annually.
If she keeps the money in the account for 5 years, which option will grow her money the most, and by how much?
Compound Interest
Ana deposits $1,200 in a savings account with a 5% simple interest rate per year. How much interest will she earn in 4 years?
$240
You plan to save $10,000 and are deciding between two savings plans:
Plan A: 4% simple interest annually for 8 years. Plan B: 5% simple interest annually for 6 years.
Which plan results in more total savings, and what is the difference?
Plan A results in $200 more total savings than Plan B.
You invest $15,000 in an account with 5% annual interest compounded annually. How much will your investment be worth after 6 years?
$20,101.44
Loan A has an annual interest rate of 3.5% compounded annually for 6 years. Loan B has an annual interest rate of 4.5% compounded annually for 5 years. You borrow $15,000 from each bank. Which loan will cost you more, and by how much?
Loan B costs $233.94 more than Loan A.
Michael is planning for retirement. He invests $10,000 into a retirement account with two different interest plans:
Option 1: A simple interest plan that earns 4% annually. Option 2: A compound interest plan that earns 3.75% annually.
If Michael plans to retire in 10 years, which option will provide him with the larger balance, and by how much?
Compound Interest
Jamie saves $2,000 in a savings account that offers 6% simple interest per year. If she leaves her money in the account for 5 years, how much interest will she earn?
$600
You want to invest $20,000 for retirement. Two funds offer different simple interest rates:
Fund A: 3.5% annually for 10 years. Fund B: 5% annually for 7 years.
Which fund provides more total interest earned, and by how much?
Both funds result in the same total interest ($7,000).
A loan has an annual interest rate of 4%, compounded annually, with a principal of $10,000 for 5 years. How much will the loan be after 5 years?
$2,166.53
You invest $20,000 in three accounts:
Account A: 2.5% interest compounded annually for 5 years. Account B: 3% interest compounded annually for 4 years. Account C: 4% interest compounded annually for 3 years.
Which account earns the most interest, and how much more is it than the second-highest?
Account A earns the most, $118 more than Account B.
Emma wants to save $20,000 for her college tuition. She finds two accounts to grow her money:
Option 1: A simple interest account that earns 5% annually. Option 2: A compound interest account that earns 4.9% annually.
If she plans to leave the money in the account for 8 years, which option is better, and what is the difference in the total amount between the two?
Compound Interest