How Much Interest Will It Earn?
D2.Eco.10.3-5
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Choose the best answer. For math problems, choose the work that gives the right answer.
1.An account pays $5 a year for every $100 saved. The interest is paid out each year. How much interest does $400 earn in 2 years?
- A.4 × $5 = $20
- B.$400 ÷ $100 = 4; 4 × $5 = $20; 2 × $20 = $40
- C.$400 + $5 = $405
2.Why does a bank pay interest on savings?
- A.Interest is a prize for walking in
- B.It lends the money to borrowers and charges them interest
- C.The law says banks must give money away
3.A bank pays 5% interest a year, which is $5 for every $100. How much interest does $100 earn in a year?
- A.$100 + $5 = $105
- B.$100 ÷ 5 = $20
- C.$100 ÷ $100 = 1; 1 × $5 = $5
4.$50 in a piggy bank earns $0. $50 in a savings account earns $1 a year. After 3 years, how much more is in the account?
- A.$50 × 3 = $150
- B.$50 + $1 = $51
- C.3 × $1 = $3 more
5.An account pays $1 a year for every $20 saved. How much interest does $80 earn in a year?
- A.$80 + $1 = $81
- B.$80 ÷ $20 = 4; 4 × $1 = $4
- C.$80 − $20 = $60
6.Why does money left in a savings account longer earn more interest?
- A.Banks forget to charge fees
- B.Old money is worth less
- C.Interest is paid for each year the money stays
7.Carlos saves $200 in an account that pays $3 a year for every $100. How much interest does he earn in one year?
- A.$200 ÷ $100 = 2; 2 × $3 = $6
- B.$200 + $3 = $203
- C.$3 × 100 = $300
8.A savings account pays $2 a year for every $100 saved. How much interest does $300 earn in one year?
- A.$300 + $2 = $302
- B.$2 × 100 = $200
- C.$300 ÷ $100 = 3; 3 × $2 = $6
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