Simple Interest Flashcards Exam
Question & Answers 2025
Sam invests $9,400 in a fund yielding 5.2% simple
interest annually. At the same time, Pat shops around for
a better interest rate and invests $9,400 in a fund
yielding 6.0% simple interest annually. After seven years,
how much more interest has Pat's fund earned than
Sam's fund?
a.
$817.80
b.
$3,948.00
c.
$652.40
d.
$526.40 - CORRECT ANSWERS ✔✔D
Nate has an account that pays 2.76% simple interest per
year and wants to accumulate $3,090 in interest from it
over the next 15 years. How much money should Nate
invest in this account to meet this goal?
a.
$1,279.26
b.
$4,369.26
, Simple Interest Flashcards Exam
Question & Answers 2025
c.
$4,373.77
d.
$7,463.77 - CORRECT ANSWERS ✔✔D
When calculating simple interest, what must you do if you
want to invest for months or weeks instead of years?
a.
Simple interest only pays yearly, so you should find
another investment.
b.
The simple interest calculation does not use those units,
so you should just calculate as normal.
c.
The units have changed, so the interest formula switches
to I·t=P·r.
d.
Interest rates are annual, so you must convert the units
into years. - CORRECT ANSWERS ✔✔D
If you invest $3,900 at a 7.83% simple annual interest
rate, approximately how long will it take for you to have a
total of $10,000?
Question & Answers 2025
Sam invests $9,400 in a fund yielding 5.2% simple
interest annually. At the same time, Pat shops around for
a better interest rate and invests $9,400 in a fund
yielding 6.0% simple interest annually. After seven years,
how much more interest has Pat's fund earned than
Sam's fund?
a.
$817.80
b.
$3,948.00
c.
$652.40
d.
$526.40 - CORRECT ANSWERS ✔✔D
Nate has an account that pays 2.76% simple interest per
year and wants to accumulate $3,090 in interest from it
over the next 15 years. How much money should Nate
invest in this account to meet this goal?
a.
$1,279.26
b.
$4,369.26
, Simple Interest Flashcards Exam
Question & Answers 2025
c.
$4,373.77
d.
$7,463.77 - CORRECT ANSWERS ✔✔D
When calculating simple interest, what must you do if you
want to invest for months or weeks instead of years?
a.
Simple interest only pays yearly, so you should find
another investment.
b.
The simple interest calculation does not use those units,
so you should just calculate as normal.
c.
The units have changed, so the interest formula switches
to I·t=P·r.
d.
Interest rates are annual, so you must convert the units
into years. - CORRECT ANSWERS ✔✔D
If you invest $3,900 at a 7.83% simple annual interest
rate, approximately how long will it take for you to have a
total of $10,000?
