Compound Interest

Compound Interest

Ms. Suarez

Multiple Choice

What is the formula for Compound Interest?

• $I\ =prt$

• $A\ =\ p\left(1+r\right)^t$

Multiple Select

The first thing I do when reading a word problem is to look for

• Keywords

• Clues

• What the question is asking

• Answer

• Nothing

Multiple Select

Identify what P, R, and T are

• p = 18,000

• t = 8 months

• r = 7

• r = .07

• t = 8 years

Multiple Choice

Tamara invested $18,000 in an account at the bank. The bank pays a 7% interest compounded annually. If Tamara does not do any changes to the account, how much will the balance be at the end of 8 years?

• 3,092.7

• 30,198,988,800

• 3,099.3

• 30927.4

Multiple Choice

Mr. Harris deposits 2,500 into two savings accounts.

The first account earns a 5% annual simple interest

The second account earns a 5% interest compounded annually

If Mr. Harris does not make any additional deposits or withdrawals, what is the sum of the balances of both accounts at the end of 3 years.

• 2875

• 2894.1

• 5769.1

• 4050