Simple and Compound Interest

Front

Carly deposited $800 in an account that earns 6% compounded annually. Lara deposited $800 in an account that earns 6% simple interest. How much will each girl have in their account at the end of 10 years if they make no withdrawals or deposits?

Back

Carly: $1432.68 Lara: $1280

Front

When calculating interest, how do you write the percent? Options: a fraction, a decimal, a round number, not enough information

Back

a decimal

Front

Equation to find the value of a $5,000 savings account with 4% interest compounded annually after 3 years.

Back

A = 5,000(1 + 0.04)³

Front

Heather invested $8,000 in a 4-year Certificate of Deposit (CD) that pays 4.1% interest compounded annually. What is the value of the CD at the end of the 4 years?

Back

$9,394.92

Front

David invests $10,000 in a savings account that pays 3.5% simple interest. How much will be in the account after 7 years?

Back

$12,450

Front

Travis invests $25,000 in a savings account that pays 2.75% simple interest. How much interest does he earn each year?

Back

$687.50

Front

Karla invested $1,000 in savings bonds with 6.75% interest compounded semi-annually for 15 years. How much total will Karla earn?

Back

$2,706.86

Front

Emily buys furniture on credit with 9.5% interest compounded quarterly. She spent $7,400. How much will she have paid after 8 years?

Back

$15,683.28

Front

Principal: $5000
Interest Rate: 3.75%
Time: 25 years
Compounded Monthly
State the future account balance.

Back

$12,749.30

Front

Given an investment of $1,500:
Which investment would have a larger balance after 5 years?
Option 1 - 4% compounded monthly
Option 2 - 3.9% compounded daily.

Back

Option 1