# Calculating Interest Quiz Study Guide ```Name:
Block:
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Calculating Interest Quiz Study Guide
Directions for #1-3: Calculate the simple interest and the total amount. Remember to label
1.
2.
3.
Principal
Rate
Time
\$400
5%
3 years
\$1200
\$790
34%
7 years
9.6%
9 months
3
Interest
Total Amount
___________
____________
___________
____________
___________
____________
4. If you put \$654.57 into a savings account that earns 2.1% interest, how much will be in the
account at the end of eight years? (Show your work!)
5. How much interest is earned on a principal of \$97.02 invested at an interest rate of 8% for
6. How much interest is earned on a principal of \$776.59 invested at an interest rate of 6% for
7. If the balance at the end of five years on an investment of \$875.77 that has been invested at
a rate of 5% is \$1,094.71, how much was the interest? (Show your work!)
Directions for #8-10: Calculate the total amount if the interest is compounded semi-annually.
Principal
Rate
Time
8.
\$500
6%
2 years
9.
\$1200
1
Total Amount
___________________
10.
\$825
42%
1 year
4.35%
12 months
___________________
___________________
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11. Your 6 year investment of \$20,000 received 5.2% interested compounded quarterly. What
12. Your 9-month investment of \$3000 received 5% interested compounded monthly. What is
13. You win the lottery and get \$32,500,000. You decide that you want to invest all of the
money in a savings account. However, your bank has two different plans. In 7 years from now,
which plan will provide you with more money?
Plan 1: The bank gives you a 7.5% interest
Plan 2: The bank gives you a 5.5% interest
rate and compounds the interest semirate and compounds the interest quarterly.
annually.
You should choose Plan _________.
14. Compare the total at the end of the investment using Simple Interest… Then Compound
Interest.
Principal: \$25,000
Rate: 7.6%
Time: 24 months
Simple Interest
Compound Interest
(compounded semi-annually)
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