Compound Interest

Caiden earned $475 frommowing lawns last summer.He deposited this money in anaccount that pays an interestrate of 3.8% compoundedannually. What will be hisbalance after 15 years?

• $827.52 Mr. Richards
• $831.10 Mrs. Basnight
• $839.45 Mr. O’Neill
• $846.80 Mr. Maloney

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Emily’s parents put $1,500 inher bank account for collegetuition. At an interest rateof 8.25% compounded semiannually,what will be thebalance after 18 years?

• A) $6,273.50 frustrated
• B) $6,314.08 bewildered
• C) $6,385.72 pleased
• D) $6,427.94 tickled pink

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Mark took a loan out for$25,690 to purchase a truck.At an interest rate of 5.2%compounded monthly, howmuch total will he have paidafter 5 years?

• A) $33,299.42 playing dodgeball
• B) $33,672.68 climbing trees
• C) $34,157.04 riding unicycles
• D) $34,389.55 parasailing

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Olivia would like to buy somenew furniture for her home.She decides to buy the furnitureon credit with 9.5% interestcompounded quarterly. If shespent $7,400, how much total willshe have paid after 8 years?

• A) $15,415.94 LeBron James
• B) $15,683.28 the Gronk
• C) $15,927.56 Serena Williams
• D) $16,109.05 Calvin Johnson

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The Henleys took out a loanfor $195,000 to purchase ahome. At a 4.3% interestrate compounded annually,how much interest will theyhave paid after 30 years?

• A) $412,749.79 Labor Day
• B) $429,305.61 the 4th of July
• E) $494,546.99 Valentine’s Day
• D) $471,259.24 Groundhog Day

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Kennedy won $3,000 from aradio contest. If she puts thismoney in a bank account thatearns 2.9% interest compoundedquarterly, how much interestwill she earn in 10 years?

• A) $915.59 Rome
• B) $933.28 Sydney
• C) $979.81 Dublin
• D) $1,005.09 Paris

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Riley invested $1,000in savings bonds. If thebonds earn 6.75% interestcompounded semi-annually,how much interest will Rileyearn in 15 years?

• A) $1,584.62 the train station
• B) $1,651.39 the movie theater
• C) $1,706.86 the art museum
• D) $1,825.10 the airport

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Town Bank offers a 2.25%interest rate, while Charter Oneoffers 2.8%. Both banks compoundinterest annually. If Rob wants toset up a new account with $5,000,how much more money will heearn at Charter One over TownBank after 25 years?

• A) $1,183.41 fairy wings
• B) $1,209.79 space suits
• C) $1,251.63 bubble wrap
• D) $1,324.10 hula skirts

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Twelve years ago, Claire put $1,800in an account that pays an interestrate of 2.5% compounded semiannually.She now plans to take themoney in that account and invest itin another account that earns 4%interest compounded monthly. Howmuch money will be in this newaccount after 7 years?

• A) $3,207.40 telling math jokes
• B) $3,348.96 chewing gum
• C) $3,574.15 eating ice cream
• D) $3,733.62 tap dancing

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Shawn is buying a new Jet Skifor $12,500. He is consideringtwo credit options. Option A offersa 6 year loan with 8.5% interestcompounded quarterly, whileOption B offers a 5 year loan with10% interest compounded annually.Which is the better option andhow much will he save?

• A) A; $495.21 raise money for charity
• B) A; $573.83 get attention
• C) B; $495.21 get on the news
• D) B; $573.83 do something crazy

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