Compound Interest

Compound Interest

Assessment

Flashcard

Mathematics

10th - 12th Grade

Practice Problem

Hard

Created by

Wayground Content

FREE Resource

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15 questions

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1.

FLASHCARD QUESTION

Front

What is Compound Interest?

Back

Compound interest is the interest calculated on the initial principal and also on the accumulated interest of previous periods. It is commonly used in finance and investments.

2.

FLASHCARD QUESTION

Front

How often is interest compounded if it is compounded quarterly?

Back

Interest is compounded 4 times a year.

3.

FLASHCARD QUESTION

Front

If Emily spends $7,400 on furniture with 9.5% interest compounded quarterly for 8 years, what is the total amount paid?

Back

$15,683.28

4.

FLASHCARD QUESTION

Front

What is the formula for calculating compound interest?

Back

A = P(1 + r/n)^(nt), where A is the amount of money accumulated after n years, including interest, P is the principal amount, r is the annual interest rate, n is the number of times that interest is compounded per year, and t is the number of years.

5.

FLASHCARD QUESTION

Front

If Karla invests $1,000 at 6.75% interest compounded semi-annually for 15 years, how much will she earn?

Back

$2,706.86

6.

FLASHCARD QUESTION

Front

What does 'principal' mean in the context of compound interest?

Back

Principal is the initial amount of money that is invested or borrowed, before interest.

7.

FLASHCARD QUESTION

Front

If the principal is $5,000, the interest rate is 3.75%, and it is compounded monthly for 25 years, what is the future account balance?

Back

$12,749.30

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