Compound Interest

What is the compound interest formula is ______________.  

• A = P(2+r)^t 
• I= Prt
• A² + B² = C²
• A = P(1+r)^t 

The compound interest formula is:
A = P(1 + r)^t

What does the A represent?

• The amount of interest earned.
• The amount of time that has passed.
• The total amount of money after a certain amount of time.
• The amount required to invest.

Tags

CCSS.HSA.SSE.A.1

Bruno was given $2000 when he turned 3 years old.  His parents invested it at a 2% interest rate compounded annually.  No deposits or withdrawls were made.  Which expression can be used to determine how much money Bruno had in the account when he turned 16? 

• 2000(1+0.02)¹³
• 2000(1-0.02)¹³
• 2000(1+0.02)¹⁶
• 2000(1-0.02)¹⁶

Tags

CCSS.HSF.BF.A.2

Find the total amount in the account to the nearest cent if the interest is compounded annually. 
$2750 at 8% for 2 years

• $2200.00
• $3207.60
• $8910.00
• $2750

Davy Crockett earned $10,000 from his raccoon skin hat company.  He deposited it into an account that earned 3% interest compounded annually.  How much interest did he earn after 4 years?

• $11,255.09
• $1255.09
• $1200
• $11,200