Simple Interest Answers

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June has a savings account with an annual simple interest rate of 2.6%. She hopes to gain $6,500 in interest over a period of eleven years. To accomplish this, June invested $17,801 in the account, but later realized that this was not enough money. To the nearest dollar, how much more money should June have initially invested to reach her goal?

A
$6,335
B
$3,715
C
$1,409
D
$4,926
2
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If you invest $3,900 at a 7.83% simple annual interest rate, approximately how long will it take for you to have a total of $10,000?

A
12 years
B
15 years
C
20 years
D
30 years
3

Rose and Dennis each open a savings account at the same time. Rose invests $2,600 in an account yielding 4.1% simple interest, and Dennis invests $2200 in an account yielding 5.7% simple interest. After nine years, who has the greater total amount of money, and how much greater is it?

A
Rose has $230.80 more than Dennis.
B
Rose has $559.40 more than Dennis.
C
Dennis has $169.20 more than Rose.
D
Dennis has $512.00 more than Rose.
4

If you wish to calculate the interest on an investment with a rate of 3.58%, what number will you plug into your equation?

A
3.58
B
0.358
C
0.0358
D
0.00358
5

Sam invests $9,400 in a fund yielding 5.2% simple interest annually. At the same time, Pat shops around for a better interest rate and invests $9,400 in a fund yielding 6.0% simple interest annually. After seven years, how much more interest has Pat’s fund earned than Sam’s fund?

A
$817.80
B
$3,948.00
C
$652.40
D
$526.40
6

When calculating simple interest, what must you do if you want to invest for months or weeks instead of years?

A
Simple interest only pays yearly, so you should find another investment.
B
The simple interest calculation does not use those units, so you should just calculate as normal.
C
The units have changed, so the interest formula switches to I·t=P·r.
D
Interest rates are annual, so you must convert the units into years.
7

Why is simple interest useful for planning parts of your financial future?

A
Simple interest can endure unforeseen economic changes by fluctuating.
B
Simple interest generates more money than any other source of income.
C
Simple interest grows more quickly if you invest in it longer.
D
Simple interest is very regular and can be calculated in advance.
8

Mary and Lewis each open a savings account at the same time. Mary invests $3,700 in an account yielding 3.2% simple interest, and Lewis invests $3,000 in an account yielding 5.9% simple interest. After fifteen years, who has the greater total amount of money, and how much greater is it?

A
Lewis has $879 more than Mary.
B
Lewis has $179 more than Mary.
C
Mary has $776 more than Lewis.
D
Mary has $345 more than Lewis.
9

Trevor has an investment worth $6,774.50. He made his only deposit in it 22 years ago. Given that the investment yields 2.7% simple interest annually, how big was the initial deposit?

A
$2,524.50
B
$4,024.03
C
$4,250.00
D
$11,404.88
10

Gina invests $1,677 in an account paying 8.61% simple interest annually. How much interest has Gina gained after six years?

A
$668.65
B
$240.65
C
$866.34
D
$2,543.34
11

Which of the following investments will earn the greatest amount of interest?

A
$2,400 invested for 3 years at 5.0% interest
B
$1,950 invested for 4 years at 4.0% interest
C
$1,600 invested for 8 years at 3.0% interest
D
$1,740 invested for 2 years at 8.0% interest
12

Nate has an account that pays 2.76% simple interest per year and wants to accumulate $3,090 in interest from it over the next 15 years. How much money should Nate invest in this account to meet this goal?

A
$1,279.26
B
$4,369.26
C
$4,373.77
D
$7,463.77

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