1.   An appliance store will sell televisions on credit with no payment due for 1 year from the date of purchase. What is the total cost of a $599 television after 1 year if the store charges 22.5% simple interest and no payments are made?
    A. $464.23 B. $772.91
    C. $733.78 D. $134.78
    Hint

  2.   Determine the amount of interest owed after 2 years on a $850 loan at % if no payments are made.
    A. $745.87 B. $104.13
    C. $208.25 D. $1058.25
    Hint

  3.   Find the interest earned if $278.50 is placed in a savings account at 9.5% simple interest for 3 years.
    A. $28.50 B. $26.46
    C. $90.34 D. $79.37
    Hint

  4.   If you invest $7,593 in an account that pays 5.6% simple interest, and you leave all of the money in the account, what is the balance of the account after 7 years?
    A. $8,018.21 B. $56,127.46
    C. $10,569.46 D. $531.51
    Hint

  5.   If you buy a necklace for $400 on your credit card, which charges 21.3% simple interest, how much interest will be added after 15 months?
    A. $266.25 B. $106.50
    C. $85.20 D. $100.00
    Hint



Glencoe
The McGraw-Hill Companies