MBF 3C
Simple & Compound Interest Quiz
NAME__________________________
Simple Interest Formula:
I = Prt
Compound Interest Formula:
A=P(1+i)n
1. Write each of the following percents as a decimal.
a)
24 %
b)
12 %
c)
1%
d)
4.6 %
Recall: The simple interest formula can be rearranged for any variable that you want to solve for.
P
I = Prt
I
rt
r
I
Pt
t
I
Pr
2. Calculate each missing item from the chart below. Show your work for each calculation.
a)
b)
c)
d)
Principal
$375
$945
$1375
Rate
7.25%
3
4 %
4
1
8 %
4
Time
90 days
10.5 years
18 months
Interest
$95.16
$16.98
$520.93
3. Determine the total amount of the investment. The interest is compounded annually.
a. $600 at 3%/a. for 7 years.
4. Determine the interest earned on each investment. The interest is compounded quarterly.
a. $2300 at 7 ½ %/a. for 8 years.
5. Determine the total amount of the investment. The interest is semi-annually.
3
a. $750 at 4 % / a. for 3 years.
4
6. What principal must be invested to get $7000 as the total amount of an investment in 12 years assuming
you can get 6%/a compound monthly?
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MBF 3C
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Simple & Compound Interest Quiz
NAME__________________________