QUIZ: Continuous and Compound Accounts

At 4% annual interest compounded quarterly, how long will it take to double your money?

• 0.4 yrs

• 16.4 yrs

• 17.4 yrs

• 18.4 yrs

Tags

CCSS.HSF.LE.A.4

The principal value is $200. Interest is compounded quarterly at a rate of 10%. What will the future value be in 10 years?

• $209.50

• $599.20

• $537.01

• None of the above

The principal is $1,200. Interest is compounded monthly at a rate of 8%. How many years does it take for the total amount to reach $2,000?

• 6 yrs

• 6.4 yrs

• 6.5 yrs

• 8 yrs

You invest $1600 at an annual interest rate of 4.6% compounded continuously. How much will you have in the account after 4 years.

• $1,923.23

• $10,138.07

• $6,701.28

• $800.26

Hugo opened a savings account and deposited $800 as principal. The account earns 4% interest, compounded continuously. What is the balance after 5 years?

• $832.00

• $977.12

• $973.32

• $960.00

Travis earned $180.72 doing odd jobs last summer and put it in a saving account that earns 15% interest compounded continuously. If he doesn't touch his money for 8 years, how much will he have?

• $400

• $500

• $553

• $600

Why does the formula for compound interest P = e^rt have no "n" variable?

• As the value of n gets higher and higher, the value of (1 + r/n)^rt approaches the value of e, so we substitute in e

• The value of n approaches zero in continuous compounding, so we cannot use the compound interest formula

• a and b above are both correct

• ¯\_(ツ)_/¯

A person invests $1,000,000 at an interest rate of 4% compounded monthly. What will be their balance at the end of 8 years?

• $2,376,395.02

• $1,376,395.12

• $491,196.08

• Not enough information given

Using the answer you got in problem 12, ow much interest did the account earn in two years?

• $1,376,395.02

• $376,395.12

• $390,196.08

• Not enough information to answer

How much money do you need to invest at 2.8% compounded continuously in order to have $25,500 at the end of 8 years? Round your answer to the nearest dollar

• $20,383

• $2,715

• $27,147

• $2,038

Tags

CCSS.HSF.LE.A.4