1. What is the amount of interest earned after two years on a $100 deposit paying 4 percent simple interest annually?

$8.00

$4.08

$8.16

$4.00

2. What is the amount of compound interest earned after three years on a $100 deposit paying 8 percent interest annually?

$24.00 $8.00 $16.64 $25.97

3. A business just took out a loan for $100,000 at 10% interest. If the business pays the loan off in three months, how much did the business pay in interest?

$2,500.00 $10.00 $250.00 $10,000.00

4. What is the annual percentage yield (APY) for a deposit paying 5 percent interest with monthly compounding?

5.00% 5.12% 79.59% 0.42%