Simple or compound?

Exercise and reference answers

Questions

1. Question

   Principal stays the same every year

   Choices

   1. Simple
   2. Compound
   3. Neither

   Correct choice

   Simple

2. Question

   Interest is added back to the principal

   Choices

   1. Simple
   2. Compound
   3. Neither

   Correct choice

   Compound

3. Question

   100 grows to 110, then 121, then 133.10

   Choices

   1. Simple
   2. Neither
   3. Compound

   Correct choice

   Compound

4. Question

   Earns the same amount each year

   Choices

   1. Simple
   2. Compound
   3. Neither

   Correct choice

   Simple

Instructions

Tap which kind of interest each line describes.

Explanation