Simple Interest Answers

3 verified answers1 views

Free Preview

Maggie is considering two investments. Investment AInvestment BPrincipal$10,000$8,000Interest rate3%2.8%Time in years515 Which investment will be worth more at the end of the investment period?

Investment A will be worth more because the interest rate is lower than the interest rate for investment B.

Investment A will be worth more because the total of the principal and the interest earned for investment A is greater than the same total for investment B.

Investment B will be worth more because the length of time is greater than the length of time for investment A.

Investment B will be worth more because the total of the principal and the interest earned for investment B is more than the same total for investment A.

Free Preview

Which term is a word for a fee that is paid for the use of another person’s money?

time

principal

interest

interest rate

Li invests money in a savings account. She wants to know the amount of simple interest that she will earn in 6 years at 3.75 percent. What additional information does she need to find this amount?

principal

amount of time

interest rate

the type of account

Mrs. Sing invests $12,876 for her business at an annual interest rate of 7 percent for 3 years. Which number will Mrs. Sing substitute for r in the simple interest formula?

0.007

0.07

0.7

Mara found the length of time of an investment. The principal of the investment was $4,300, the interest rate was 6.2 percent, and the interest was $2,666. Mara made an error in her work.What was Mara’s error?

Mara did not substitute the values from the problem into the formula correctly.

Mara did not multiply correctly.

Mara did not divide correctly.

Mara divided when she should have multiplied.

What is the simple interest that is missing from the table? Use the formula .I?p$5,630r4%t2 years

$450.00

$450.40

$45,000.40

$45,040.00

Constance will put $500 in a savings account. Which option should she choose so that she will have the most money?

1 year at 12 percent

1 year at 9 percent

2 years at 7 percent

2 years at 5 percent

LaShea would like to invest her $100 in birthday money. Which option will give her the most money at the end of the investment period?

1 year at 8 percent

1.5 years at 7 percent

2 years at 6.5 percent

3 years at 4 percent

Hanna puts $4,383 in a savings account with an annual interest rate of 5.2 percent for 3 years. Into which variable should she substitute 4,383 in the simple interest formula ?

The following information is known about a loan.Time = 8 yearsInterest rate = 14%Principal = $1,010What is the total amount of simple interest that is earned?

$113.20

$1,131.20

$11,311.20

$113,112.00

Did you find these answers helpful?

Simple Interest Answers

More from this Course

TRY EDGENUITY HACKS