Compound Interest

Compound Interest

S. Foots

Compound Interest formula $\$  

 $A=p(1+r)^t$  

Multiple Choice

Change 6.5% to a decimal

• .65

• 6.5

• .065

• .065%

Multiple Choice

Change 18% to a decimal

• 18

• .18

• .018

• .18%

Multiple Choice

What does P represent in the equation A=P(1+r)^t

• rate

• principal

• time

• amount

Multiple Choice

What does r represent in the equation A=P(1+r)^t

• rate

• principal

• time

• amount

Multiple Choice

Caiden deposited $475 in an account that pays an interest rate of 3.8% compounded annually. What will be his balance after 15 years?

• $827.52

• $831.10

• $839.45

• $846.80

Multiple Choice

Steven was given $2000 when he turned 2 years old. His parents invested it at a 2% interest rate compounded annually. No deposits or withdrawals were made. Which expression can be used to determine how much money Steven had in the account when he turned 18?

• 2000(1-0.02)¹⁸

• 2000(1+0.02)¹⁸

• 2000(1+0.02)¹⁶

• 2000(1-0.02)¹⁶

Multiple Choice

Caiden deposited $475 in an account that pays an interest rate of 3.8% compounded annually. What will be his balance after 15 years?

• $827.52

• $831.10

• $839.45

• $846.80

Multiple Choice

You borrowed $59,000 for 2 years at 11% which was compounded annually. What is the total?

• $13,693.90

• $1,363.90

• $72,693.90

• $73,793.90

Multiple Choice

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

• $1,690

• $2,292.45

• $1,87.55

• $3,982.45

Multiple Choice

Krystal has $3000 invested at a 2% interest rate. Which expression can be used to determine how much money Krystal had after 16 years?

• $A=3000\left(1+.02\right)^{16}$

• $A=3000\left(1-.02\right)^{16}$

• $A=16\left(1+.2\right)^{3000}$

• $A=3000\left(.2\right)^{16}$

Multiple Choice

Audrey deposited $2,800 in a

savings account that pays 2.65% interest compounded annually.

What is the total value of the account after 7 years?

• $562.57

• $3362.57

• $14,514.15

• $2,569,680

Multiple Choice

Steve deposited $5,000 in a savings account that pays 4% interest compounded annually.

Which equation could be used to find the value of the account after 3 years?

• A = 5,000(1 + 4)³

• A = 5,000(1 + 0.04)³

• A = 5,000(1 + 0.4) x 3

• A = 5,000(0.04)³

Poll

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