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Name: Block: Date: Calculating Interest Quiz Study Guide Directions for #1-3: Calculate the simple interest and the total amount. Remember to label your answers! 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 thirty-six months? (Show your work!) 6. How much interest is earned on a principal of $776.59 invested at an interest rate of 6% for five years? (Show your work!) 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. Remember to label your answers! Principal Rate Time 8. $500 6% 2 years 9. $1200 1 Total Amount ___________________ 10. $825 42% 1 year 4.35% 12 months ___________________ ___________________ Name: Block: Date: 11. Your 6 year investment of $20,000 received 5.2% interested compounded quarterly. What is your total return? 12. Your 9-month investment of $3000 received 5% interested compounded monthly. What is your total return? 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) Name: Block: Date: