Lesson 8 Homework Practice Financial Literacy Simple Interest Answers

$60

Loan A: $5,000 at 4% for 3 years. Loan B: $5,000 at 3.5% for 4 years. Which has less interest? $60 Loan A: $5,000 at 4% for 3 years

Homework Tip: Many Lesson 8 homework sheets will ask a follow-up question: "What is the total balance?" To find this, simply add the Interest ($I$) to the Principal ($P$). Homework Tip: Many Lesson 8 homework sheets will

| Question # | Problem Type | Answer | | :--- | :--- | :--- | | 1 | Find I: P=$400, r=5%, t=2 yrs | $40.00 | | 2 | Find I: P=$1,200, r=4.5%, t=3 yrs | $162.00 | | 3 | Find Total: P=$600, r=3%, t=4 yrs | $672.00 | | 4 | Find Total: P=$2,500, r=2%, t=6 mos | $2,525.00 | | 5 | Find Rate: I=$90, P=$500, t=3 yrs | 6% | | 6 | Find Principal: I=$180, r=4%, t=5 yrs | $900.00 | | 7 | Find Time: I=$120, P=$800, r=5% | 3 years | | 8 | Real-life: Car loan of $10k at 7% for 5 yrs (Interest only) | $3,500 | | 9 | Real-life: Savings bond for 3.5 yrs at 1.8% on $1,500 (Total) | $1,594.50 | | 10 | Compare Loans: $2k at 6% vs $2k at 4% (2 yrs each) | $240 vs $160 (4% is better) | t=6 mos | $2

6%

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