Compound Interest

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

• $1,584.62

• $2,651.39

• $2,706.86

• $1,825.10

Olivia would like to buy some new furniture for her home. She decides to buy the furniture on credit with 9.5% interest compounded quarterly. If she spent $7,400, how much total will she have paid after 8 years?

• $15,415.94

• $15,683.28

• $15,927.56

• $16,109.05

Annually means compounding how many times a year?

• 4

• 2

• 1

• 6

Shawn is buying a new Jet Ski for $12,500. He is considering 2 credit options. Option A offers a 6 year loan with 8.5% interest compounded quarterly, while Option B offers a 5 year loan with 10% interest compounded annually.Which option is better and how much will he save?

• Option A; $495.21

• Option A; $573.83

• Option B; $495.21

• Option B; $573.83

Daily means compounding how many times a year?

• 7

• 365

• 360

• 52

Quarterly means compounding how many times a year?

• 50

• 2

• 4

• 25