calculate and compare simple interest and compound interest earnings
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Q 1/6
Score 0
If you invest $500 at an annual simple interest rate of 5% for 2 years, how much total interest will you earn, and how does it compare to compound interest compounded annually at the same rate and time?
30
Simple Interest: $50, Compound Interest: $50. Simple and compound interest are the same.
Simple Interest: $50, Compound Interest: $51.25. Compound interest is higher.
Simple Interest: $52.50, Compound Interest: $50. Compound interest is lower.
Simple Interest: $50, Compound Interest: $48.75. Simple interest is higher.
Q 2/6
Score 0
Natalie deposited $600 in a savings account with an annual simple interest rate of 4% for 3 years. How much more will she earn if the interest was compounded annually instead?
30
$2.88 more with compound interest.
$0. No difference between simple and compound interest.
$6. Compound interest is significantly higher.
$1.12 less with compound interest.
6 questions
Q.
If you invest $500 at an annual simple interest rate of 5% for 2 years, how much total interest will you earn, and how does it compare to compound interest compounded annually at the same rate and time?
1
30 sec
8.12.D: Personal Financial Literacy
Q.
Natalie deposited $600 in a savings account with an annual simple interest rate of 4% for 3 years. How much more will she earn if the interest was compounded annually instead?
2
30 sec
8.12.D: Personal Financial Literacy
Q.
An amount of $800 is invested for 4 years at an annual simple interest rate of 3%. What is the difference in total interest earned if the interest is compounded annually instead?
3
30 sec
8.12.D: Personal Financial Literacy
Q.
Jack invests $1000 at a simple interest rate of 6% per annum for 5 years. How much additional interest would he earn if the interest were compounded annually instead?
4
30 sec
8.12.D: Personal Financial Literacy
Q.
Michael invests $700 at a simple interest rate of 4% per year for 4 years. How much more money would he have earned if the interest was compounded annually?
5
30 sec
8.12.D: Personal Financial Literacy
Q.
Emma puts $1500 into a bank account offering 3.5% annual interest. Calculate the interest earned after 3 years if it is compounded annually, and how does it compare to the simple interest earned?
