Unit 9 Review

After calculating simple interest, how do you calculate total account balance?

Five years after opening his savings account, Hank had $9,205 in the account which earns annual simple interest. If Hank started with $7,000 in his account and did not make any additional deposits or withdrawals, what was the approximate annual interest rate on the savings account?

Francis deposited $18,300 in a savings account that earns 3.2% simple interest. Frankie has not made any deposites or withdrawals since she opened the account. Approximately how many years have passed since Frankie opened the account if her latest balance is $21,228?

Nelly's mother is borrowing $32,000 to buy a car from the dealership. She contacted several banks, and she is comparing two different options.

-Company 1 offers an interest rate of 3.75%

-Company 2 offers an interest rate of 6.9%

Both loan options involve simple interest and must be repaid in exactly 4 years. How much more will Nelly's mother pay in interest if she chooses to borrow the money from Company 2?

Benny is considering various savings options. At Bank 1, she can invest $2,000 in a CD that earns compound interest at an annual rate of 3.6%. At Bank 2, she can invest $2,000 in a savings account that pays 3% simple interest upon withdrawal. How much more money would Benny earn in 4 years with the CD at Bank 1 than with the savings account at Bank 2.

Alex is borrowing $22,000 to buy a new motorcycle. If he borrows the money at 6.25% interest compounded annually for 3 years, how much interest will he pay on his motorcycle?

Jerry is going to deposit $870 in an account that earns 7.7% interest compounded annually. His wife Bailey will deposit $925 in an account that earns 8.4% simple interest each year. They deposit the money on the same day and make no additional deposits or withdrawals for the accounts. Which statement is true concerning Jerry's and Bailey's account balances after 4 years?

Whitney has a list of the estimated costs for each semester to attend a four-year university. What is the total estimated cost to attend college for four years?

The cost of tuition at the college Sabrina wants to attend is $10,400 per year. Sabrina's family will pay 60% of the tuition cost each year. Sabrina has two years to save enough money to attend her first year of college. What is the minimum amount that she should save each month in order to have enough money to attend her first year of college?

Wendy is planning to attend a private university after she graduates from high school in 4 years. She is devising a plan to save money each month to help with the expenses of attending the university. The cost of attending the private university for one year is $24,700. Her family promised to contribute $12,300 each year she is in school. Which plan shows the minimum amount of money Wendy must contribute to her savings to have enough money to pay for her first year of tuition?