ASSIGNMENT
1. In the simple interest formula I = Prt, what does P represent?
2. I low is compound interest different from simple interest? For an account that earns simple annual Interest, find the interest and the balance of the account.
3. P = $500, r = 7%, t = 4 years
4. P = $2500, r = 3%, t = 9 months Find the unknown quantity for an account that earns simple annual interest.
5. A = $563, P = $500,
6. A = $1670, P = $1600, r = = 7 years r = 3.5%, t =
7. a Savings Account You deposit $700 into a savings account that earns 2% interest compounded annually. Find the balance of the account after 4 years. Round your answer to the nearest cent.
In the following exercises, you may find it helpful to use a calculator for compound interest. For an account that earns simple annual interest, find the interest and the balance of the account.
8. P = $1250, r = 4%, t = 10 years
9. P = $325, r = 7%, t = 8 years
10. P = $600, r = 2.7%, t = 4.5 years
11. P = $3200, r = 3.5%, t = 3.5 years
12. P = $100, r = 8%, t = 6 months
13. P = $495, r = 5%, t = 21 months
14. Loan You loan your brother $300 and charge him 2% simple annual interest. He promises to repay you one year later. How much will your brother have to pay you?
