Compound Interest Check

Which term is given to the original amount of money that is deposited into an account.

• Principal (P)

• Rate of interest (R)

• Time in Years (T)

• Certificate of Deposit

Which variable is represented by N in the compound interest formula?

• Principal

• Rate of interest

• Time in Years

• Compounding interval

If my savings account compounds weekly, what number is N?

• 12

• 365

• 52

• 1

Which compounding interval will grow your money the fastest?

• Weekly

• Monthly

• Yearly

• They all grow your money at the same rate.

Which variable of the compound interest formula do banks have control over?

• Compounding intervaal

• Principal

• Years you keep it in the account for

Which variable of the compound interest formula do you have control over?

• Compounding intervaal

• Principal

• Interest rate

What was the P in the problem you read?

• $5,000

• 2.5%

• $1,415.13

• $6,415.13

Which is the right way to take the percentage rate and put it in decimal format in your formula?

• 2.5% is .025

• 2.5% is 0.25

• 2.5% is 2.5

• 2.5% is .0025

What is the compounding amount for the problem you read?

• 12

• 4

• 365

• 52

What is the time (T) in the problem you read?

• 2

• 2.5

• 10

• 4