Interest: simple and compound compared

Answer Key - Grade 7 Math Worksheet

Circle the best answer, or write your answer on the line.

1. 1.

   Mr. Cole's pretend savings account holds $850 and earns 4% simple interest each year. Milo wants the interest after 3 years. How much is it?

   $102
2. 2.

   Ms. Frost's pretend savings account holds $500 and earns 4% simple interest each year. Pia wants the balance after 3 years. How much is in the account then?

   $560
3. 3.

   Ms. Shaw's pretend savings account holds $900 and earns 2% simple interest each year. Tala wants the balance after 5 years. How much is in the account then?

   $990
4. 4.

   The art club's pretend fund holds $250 and earns 6% simple interest each year. Zee wants the balance after 4 years. How much is in the account then?

   $310
5. 5.

   Mr. Dunn's pretend savings account started with $400 and earned $84 in simple interest over 3 years. Ari works out the yearly rate. What percent is the rate?

   7
6. 6.

   Mr. Vance's pretend savings account started with $600 and earned $162 in simple interest over 3 years. Bo works out the yearly rate. What percent is the rate?

   9
7. 7.

   Mr. Grove's pretend savings account started with $250 and earned $90 in simple interest over 3 years. Jun works out the yearly rate. What percent is the rate?

   12

8. Read this first

   Savings table

   Year	Start	Interest	End
   1	$500	$20	$520
   2	$520	?	?

9. 8.

   Ms. Shaw's pretend savings account earns 4% compound interest each year. Pia reads the table. To the nearest cent, what is the end of year 2?

   $540.80
10. 9.

    The class trip fund earns 5% compound interest each year. Ren reads the table. To the nearest cent, what is the end of year 2?

    $220.50
11. 10.

    Ms. Hale's pretend savings account earns 6% compound interest each year. Tala reads the table. To the nearest cent, what is the end of year 2?

    $393.26