Compounded Interest

Caiden earned $475 from mowing lawns last summer.He deposited this money in an account that pays an interest rate of 3.8% compounded annually. What will be his balance after 15 years?

• $827.52                     (Mr. Williams)       
• $831.10                 (Mrs. Hoch)
• $839.45                    (Mr. Krajunus)
• $846.80                   (Ms. Palombo)

Emily’s parents put $1,500 in her bank account for college tuition. At an interest rate of 8.25% compounded semiannually,what will be the balance after 18 years?

• $6,273.50  frustrated
• $6,314.08 bewildered
• $6,385.72         pleased
• $6,427.94           tickled pink

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

• $33,299.42       playing dodgeball
• $33,672.68   climbing trees
• $34,157.04         riding unicycles
• $34,710.88      flipping pancakes

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       LeBron James
• $15,683.28            Chase Utley
• $15,927.56       Serena Williams
• $16,349.72            Tom Brady

Kennedy won $3,000 from a radio contest. If she puts this money in a bank account that earns 2.9% interest compounded quarterly, how much interest will she earn in 10 years?

• $915.59                Rome
• $933.28             Sydney
• $979.81               Dublin
• $1,005.09              Paris

Shawn is buying a new Jet Ski for $12,500. He is considering two 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 is the better option and how much will he save?

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

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

If $1,000 is invested at 16% interest, compounded continuously, for five years, what is the ending balance?

• $1,225,54
• $2,225.54
• $22,255.40
• $225.54

If $1,000 is invested at 16% interest, compounded continuously, for five years, what is the ending balance?

• $1,225,54
• $2,225.54
• $22,255.40
• $225.54

If $1200 is deposited into an account earning 3.2% compounded monthly, how long will it take to have $10,000?

• 795.2 ears

• 66.3 years

• 8.33 years

• 92 years