Compound Interest

Front

In the compound interest formula A=P(1+r)^t, what does the A stand for?

Back

The total amount

Front

In the compound interest formula A=P(1+r)^t, what does the P stand for?

Back

The principal amount (original amount)

Front

Monthly means how many times a year?

Back

12

Front

Semi-Annually means how many times a year?

Back

2

Front

Julia invested $1000 for college in an account earning 5% compounded annually. When she checked the account after 4 years, how much money did she find in the account?

Back

$1215.51

Front

Daniel invests $360 in a bank account that is compounded annually for 8 years with an interest rate of 5.5%. What will be the total amount in the account after the 8 years is over?

Back

$552.49

Front

Riley invested $1,000 in savings bonds. If the bonds earn 6.75% interest compounded semi-annually, how much total will Riley earn in 15 years?

Back

$2,706.86

Front

You borrowed $1,690 for 5.5 years at an interest of 5.7%. How much is the total you pay?

Back

$2,292.45

Front

Trevor wants to have $4000 saved up in 3 years for a car. If he invests $1500 in a savings account that is compounded annually at an interest rate of 12%, will he have enough money at the end of the 4 years?

Back

No

Front

When calculating interest, what do we always change the percent to?

Back

a decimal