Olivia opened a savings account and deposited $600.00. The account earns 9% interest, compounded continuously. If she wants to use the money to buy a new bicycle in 2 years, how much will she be able to spend on the bike?

Why can't she just buy a $600 bicycle right now?????

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

There's no reason, it just doesn't appear

Compound Interest

Quiz

•

Mathematics

•

11th Grade

•

Practice Problem

•

Medium

•

CCSS

HSF.LE.A.1, 3.MD.A.1, HSF.LE.A.4

+7

Standards-aligned

Amanda Coursey

Used 3+ times

FREE Resource

20 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

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

$1,584.62

$2,651.39

$2,706.86

$1,825.10

Tags

CCSS.HSA.CED.A.1

CCSS.HSF.BF.A.1

CCSS.HSF.LE.A.1

CCSS.HSF.LE.A.2

2.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

Emily 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

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.SSE.A.1

CCSS.HSF.BF.A.1

CCSS.HSF.LE.A.1

CCSS.HSF.LE.A.2

CCSS.HSF.LE.B.5

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Monthly means how many times a year?

4

12

52

365

Tags

CCSS.3.MD.A.1

4.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

Principal: $999
Interest Rate: 5.45%
Time: 19 years
Compounded Quarterly
State the future account balance.

$2794.10

$2738.11

$2774.98

$2807.11

Tags

CCSS.HSA.CED.A.1

CCSS.HSF.LE.A.1

CCSS.HSF.LE.B.5

5.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

Principal: $5000
Interest Rate: 3.75%
Time: 25 years
Compounded Monthly
State the future account balance.

$12712.31

$12,749.30

$12,657.59

$12550.84

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.SSE.A.1

CCSS.HSF.BF.A.1

CCSS.HSF.LE.A.1

CCSS.HSF.LE.A.2

6.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

Jay'den 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 year?

$827.52

$831.10

$839.45

$846.80

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.SSE.A.1

CCSS.HSF.BF.A.1

CCSS.HSF.LE.A.1

CCSS.HSF.LE.A.2

CCSS.HSF.LE.B.5

7.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

The Arnold's took out a loan for $195,000 to purchase a home. At a 4.3% interest rate compounded annually, how much total will they have paid after 30 years?

$412,749.79

$529.305.61

$689,546.99

$640,891.53

Tags

CCSS.HSF-LE.A.1C

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Compound Interest

20 questions

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

Emily 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.

Monthly means how many times a year?

Principal: $999
Interest Rate: 5.45%
Time: 19 years
Compounded Quarterly
State the future account balance.

Principal: $5000
Interest Rate: 3.75%
Time: 25 years
Compounded Monthly
State the future account balance.

Jay'den 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 year?

The Arnold's took out a loan for $195,000 to purchase a home. At a 4.3% interest rate compounded annually, how much total will they have paid after 30 years?

Change 6.75% to a decimal.

Semi-Annually means how many times a year?

Courtney saved up $2,200 working as a waitress over the summer. She put this money into a bank account that earned 5.2% interest and is compounded daily. How much will she have in her account at the end of 4 years?

Access all questions and much more by creating a free account

Similar Resources on Wayground

Popular Resources on Wayground

Discover more resources for Mathematics

Compound Interest

20 questions

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

Emily 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.

Monthly means how many times a year?

Principal: $999Interest Rate: 5.45%Time: 19 yearsCompounded QuarterlyState the future account balance.

Principal: $5000Interest Rate: 3.75%Time: 25 yearsCompounded MonthlyState the future account balance.

Jay'den 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 year?

The Arnold's took out a loan for $195,000 to purchase a home. At a 4.3% interest rate compounded annually, how much total will they have paid after 30 years?

Change 6.75% to a decimal.

Semi-Annually means how many times a year?

Courtney saved up $2,200 working as a waitress over the summer. She put this money into a bank account that earned 5.2% interest and is compounded daily. How much will she have in her account at the end of 4 years?

Access all questions and much more by creating a free account

Similar Resources on Wayground

Popular Resources on Wayground

Discover more resources for Mathematics

Principal: $999
Interest Rate: 5.45%
Time: 19 years
Compounded Quarterly
State the future account balance.

Principal: $5000
Interest Rate: 3.75%
Time: 25 years
Compounded Monthly
State the future account balance.