• #### 1.  Which statement describes SIMPLE interest?

• The same amount of interest every time
• Interest on interest
• The amount of interest goes up every time
• #### 2.  You have money to invest. The bank offers you 6% at the end of the year or 0.5% every month. Which is the better option?

• 6% at the end of the year.
• 0.5% every month.
• Not enough information to determine.

• 0.675
• 0.0675
• 0.00675
• 6.75
• #### 4.  You invest $1000 at 4.6% interest, compounded annually, for 15 years. How much is your investment worth at the end of 15 years? •$1963.25
• $2210.90 •$1059.07
• $1690.00 • #### 5. You invest$2000 at 4.5% SIMPLE interest for 5 years. What is the total after 5 years?

• $2225.00 •$2450.00
• $12,819.47 •$2492.36
• #### 6.  You invest $400 at %6 for one year (compounded annually). What is the total after 1 year? •$24.00
• $424.00 •$402.40
• $487.63 • #### 7. Which is better for you when you are investing money? • Compound interest • Simple interest • #### 8. You borrow$4000 for 5 years at 10% compounded monthly. How much do you owe after 5 years?

• $4,346.12 •$6,581.24
• $6,442.04 •$6,000.00
• \$4,442.00
• #### 9.  You borrow money for 3 years at 8% interest. You are given a choice of simple interest or compound interest. Which is the better option?

• Compound interest
• Simple interest
• Not enough information to determine

• 0.33%
• 4%
• 0.04%
• 0.03%
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