12/10/2018 Simple and Compound Interest | Print - Quizizz

Quizizz Name :
Class :
Simple and Compound Interest Date :

1. The simple interest formula is I=Prt. What does the t represent?

a) Principle b) Interest

c) Time, in hours d) Time, in years

2. What is the compound interest formula is ______________.

a) A = P(2+r)t b) I= Prt

c) A2 + B2 = C2 d) A = P(1+r)t

3. The compound interest formula is:

A = P(1 + r)t

What does the A represent?

a) The amount of interest b) The amount of time that has
earned. passed.
c) The total amount of money d) The amount required to invest.
after a certain amount of time.

4. Principal = $350.
Interest rate = 2.5%
TIme = 3 years.
How much simple interest?
a) $7.50 b) $26.25

c) $87.5 d) $262.50

5. Beyonce went to the mall and saw a massage chair that she would have to take a loan out for $6500 to
purchase. The bank said that she could get a simple interest rate of 8% for 5 years. What is the total amount
that Beyonce will pay for the chair?
a) $2600 b) $910

c) $9100 d) $260

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6. Interest can be defined as:

a) a charge for lending money b) the amount owed for
borrowing the amount charged
to borrow or the amount
earned on
savings/investments
c) the amount added into your d) a charge for convenience of
savings account when accessing money in your bank
opening a bank account

7. To earn as much interest as possible, you should open a savings account that earns ______ interest and has
the _____ interest rate.
a) compound; lowest b) compound; highest

c) simple; lowest d) simple; highest

8. Davy Crockett earned $10,000 from his raccoon skin hat company. He deposited it into an account that earned
3% interest compounded annually. How much interest did he earn after 4 years?
a) $11,255.09 b) $1255.09

c) $1200 d) $11,200

9. Bilbo Baggins earned $475 from walking long distances last summer. He deposited this money in an account
that pays an interest rate of 3.8% compounded annually. What will be his balance after 15 years?
a) $827.52 b) $831.10

c) $839.45 d) $846.80

10. Jimmy Neutron borrows $1200 from a bank with .8% simple interest per year. How much will he have to pay
back total in 2 years?
a) $150 b) $19.20

c) $1219.20 d) $1392

11. Tuition for Bubba Gump University costs $10,000 per year. Forrest Gump would like to attend, and plans on
saving for the next 2 years. If he already has $4600 saved, what is the minimum amount needed to save per
month to cover one year of tuition?
a) $2700 per month b) $450 per month

c) $225 per month d) $416.67 per month

12. The simple interest formula is I=Prt. What does the I represent?
a) Principle b) Interest

c) Time d) Percent Rate

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12/10/2018 Simple and Compound Interest | Print - Quizizz

13. The simple interest formula is I=Prt. The P represents the principal. The principal is ___________________.
a) the amount of money b) the percent interest for his
borrowed or the original year
money deposited/invested
c) the amount taxed d) the amount the bank owes
you for being a customer at
their bank

14. What is 7.25% converted to a decimal?

a) .725 b) 0.725

c) 0.0725 d) 7.25

15. Find the simple interest to the nearest cent. $575 at 6.25% for 7 years.
a) $249.55 b) $2,515.63

c) $251.56 d) $25.15

16. Find the total amount in the account to the nearest cent if the interest is compounded annually.
$2750 at 8% for 2 years
a) $2200.00 b) $3207.60

c) $8910.00 d) $2750

17. Justin owes a friend money for a lawnmower he bought from him and borrows $1200 from a bank with 8%
simple interest per year. How much will he have to pay back total in 2 years?
a) $150 b) $192

c) $1350 d) $1392

18. Calvin earned $475 from mowing lawns last summer. He deposited this money in an account that pays an
interest rate of 3.8% compounded annually. How much will he have in 15 years?
a) $827.52 b) $831.10

c) $839.45 d) $846.80

19. Jimmy invested $200 in a retirement account that had a rate of 20% that compounds annually. If Jimmy puts
the money in when he is 24 and takes it out when he is 64, how much money will be in his account rounded to
the nearest dollar?
a) $29,395 b) $293,954.31

c) $293,954 d) $2,939

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Answer Key
1. d 6. b 11. c 16. b
2. d 7. b 12. b 17. d
3. c 8. b 13. a 18. b
4. b 9. b 14. c 19. c
5. c 10. c 15. c

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