Which type of interest grows faster?, Simple Interest, Compound Interest, They're the same, Which is the formula for simple interest?, I = P * r * t, I = P (1 + r * t), I = P + r + t, I = P (1 + r / t), Why do banks choose compound interest for savings accounts?, They just felt like it, It decreases saving over time, It helps money grows faster because of additional interest, None of the above, Which factor does not affect interest?, Principal amount, Interest rate, Time, None of the above, What is the difference between simple and compound interest?, Compound interest is calculated on the rate, Simple interest changes every year, Compound interest earns on both principal and interest earned, None of the above, Dom wants to save $500,000 at a simple interest rate of 4% for 10 years. How much will interest will he gain?, $200,000, $2,000,000, $20,000, $210,000, Jon loans ₱15,000 that earns 7% simple interest for 3 years. What is the total amount to be repaid?, ₱17,100, ₱18,150, ₱20,000, ₱19,200, If $10,000 is invested at 6% compound interest semi-annually for 3 years, what is the final amount?, $11,945.02, $11,960.18, $11,956.18, $11,940.52, A savings account earned $1,440 in simple interest after 6 years at 4% per year. What was the original principal?, $6,000, $8,000, $5,000, $7,000, An investment of $12,000 earns 8% compound interest annually for 3 years. Approximately how much is the investment worth?, $15,116.54, $16,203.21, $14,010.81, $15,831.20, Which investment will have the higher final amount after 4 years if both start with $10,000 at 5% per year?, Not enough data to calculate, Simple interest only, Compound interest only, They're the same, Shaya invested $30,000 at 4% compound interest annually for 6 years. What is the final amount?, $37,959.57, $36,981.27, $36,293.31, $37,955.97, How much should you invest today at 5% compound interest annually to have $25,000 after 8 years?, $19,500, $18,000, $16,920, $20,000, Jeff wants to save $100,000 for 5 years. Bank A offers simple interest while Bank B offers compound interest. Which one should he choose to gain the most?, Bank A, Bank B, They're the same, Homer begins saving for retirement at age 25. His bank offers compound interest on his savings account. Why is compound interest especially beneficial for long-term savings?, It reduces the principal over time, Interest is earned on both the principal and previously earned interest

Simple & Compound Interest

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