Simple Interest Card Sort & Solve

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| By Sara Kanaby
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Sara Kanaby
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Quizzes Created: 2 | Total Attempts: 399
| Attempts: 203
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  • 1/11 Questions

    6. Nancy has $675 in a savings account.  The simple interest rate is 3%.  How much interest will she earn in 2 years?

    • A
    • B
    • C
    • D
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About This Quiz

This 'Simple Interest Card Sort & Solve' quiz tests the ability to calculate simple interest over various periods and initial investments. It enhances financial literacy by applying basic math skills to real-life financial scenarios.

Simple Interest Card Sort & Solve - Quiz

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  • 2. 

    3. Travis invests $25,000 in a savings account that pays 2.5% simple interest.  How much interest does he earn each year?

    • A

    • B

    • C

    • D

    Correct Answer
    A. D
  • 3. 

    Steve deposited $5,000 in a savings account that pays 4% interest compounded annually. Which equation could be used to find the value of the account after 3 years?

    • A

    • B

    • C

    • D

    Correct Answer
    A. B
    Explanation
    Equation B could be used to find the value of the account after 3 years. This equation represents the compound interest formula, which is A = P(1+r/n)^(nt), where A is the final amount, P is the principal amount (initial deposit), r is the annual interest rate (as a decimal), n is the number of times interest is compounded per year, and t is the number of years. In this case, the principal amount is $5,000, the annual interest rate is 4% (or 0.04), interest is compounded annually (n = 1), and the time period is 3 years (t = 3).

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  • 4. 

    11.  Kelly plans to deposit her graduation money into an account and leave it there for 4 years while she goes to college. She receives $750 in graduation money and she deposits it into an account that earns 4.25% interest compounded annually. How much will be in Kelly’s account at the end of four years if she makes no other deposits or withdrawals into the account?

    • A

    • B

    • C

    • D

    Correct Answer
    A. D
    Explanation
    Kelly plans to deposit her graduation money into an account that earns 4.25% interest compounded annually. Since she is not making any other deposits or withdrawals into the account, the amount in her account at the end of four years can be calculated using the formula for compound interest:

    A = P(1 + r/n)^(nt)

    Where:
    A = the final amount in the account
    P = the principal amount (initial deposit)
    r = the annual interest rate (4.25%)
    n = the number of times interest is compounded per year (1, since it is compounded annually)
    t = the number of years (4)

    Plugging in the values, we have:

    A = 750(1 + 0.0425/1)^(1*4)

    Simplifying the expression, we get:

    A = 750(1.0425)^4

    Calculating further, we find:

    A ≈ 750(1.181032)

    A ≈ $885.77

    Therefore, at the end of four years, there will be approximately $885.77 in Kelly's account.

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  • 5. 

    8. Lana deposits $500 into a savings account that gains simple interest at a rate of 2% annually.  How much interest will she earn in 10 years?

    • A

    • B

    • C

    • D

    Correct Answer
    A. A
    Explanation
    Lana will earn 2% of $500 annually as interest. In 10 years, she will earn a total interest of 10 times the annual interest. Therefore, the amount of interest she will earn in 10 years is $500 * 2% * 10 = $100.

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  • 6. 

    4. Jaxon invests $100 into an account at a rate 2%.  He plans on keeping the account open for 15 years.  If it is a simple interest account, how much money will he have in the account?

    • A

    • B

    • C

    • D

    Correct Answer
    A. C
    Explanation
    Jaxon invests $100 into an account at a 2% interest rate. Since it is a simple interest account, the interest earned each year will be the same. To calculate the interest earned per year, we multiply the principal amount ($100) by the interest rate (2%) and divide by 100. Therefore, the interest earned per year is $2. After 15 years, Jaxon will have earned a total interest of $30 ($2 x 15). Adding this interest to the principal amount, Jaxon will have $130 in the account. Therefore, the correct answer is C.

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  • 7. 

    2. Gilberto invests $900 in a savings account that pays 4% simple interest.  If Gilberto makes no withdrawals or deposits to the account, how much will be in the account after 7 years?

    • A

    • B

    • C

    • D

    Correct Answer
    A. D
  • 8. 

    7. Megan is currently in 8th grade and wants to begin saving money for college.  She wants to invest $2000 in a simple interest account that pays at a rate of 3.5%.  How much interest will she earn in 7 years?

    • A

    • B

    • C

    • D

    Correct Answer
    A. C
    Explanation
    Megan wants to invest $2000 in a simple interest account that pays at a rate of 3.5%. To calculate the interest she will earn in 7 years, we can use the formula: Interest = Principal * Rate * Time. Plugging in the values, we get: Interest = $2000 * 0.035 * 7 = $490. Therefore, Megan will earn $490 in interest over 7 years.

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  • 9. 

    5. Laila deposited $800 in an account that earns 6% simple interest.  How much will she have in her account at the end of 10 years if she makes no withdrawals or deposits?

    • A

    • B

    • C

    • D

    Correct Answer
    A. B
    Explanation
    Laila will have $1040 in her account at the end of 10 years if she makes no withdrawals or deposits.

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  • 10. 

    1. David invests $10,000 in a savings account that pays 3.5% simple interest.  If David makes no withdrawals or deposits to the account, how much will be in the account after 7 years.

    • A

    • B

    • C

    • D

    Correct Answer
    A. C
    Explanation
    The correct answer is C.
    This is because simple interest is calculated by multiplying the principal amount (in this case, $10,000) by the interest rate (3.5%) and the number of years (7).
    So, the amount in the account after 7 years would be $10,000 + ($10,000 * 0.035 * 7) = $10,000 + $2,450 = $12,450.

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  • 11. 

    10.      Willa deposited $5,000 in an account that pays 6% interest compounded annually.  Which expression can be used to find the value of her investment after 5 years?

    • A

    • B

    • C

    • D

    Correct Answer
    A. A
    Explanation
    The correct answer is A. The expression A = 5000(1 + 0.06)^5 represents the value of Willa's investment after 5 years. The initial amount of $5,000 is multiplied by (1 + 0.06) raised to the power of 5, which represents the annual interest rate of 6% compounded annually over 5 years. This calculates the future value of the investment after 5 years.

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  • Current Version
  • Mar 18, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Apr 17, 2019
    Quiz Created by
    Sara Kanaby
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