Compound Interest

$5000 was deposited in an account that pays 4% interest compounded monthly. What was the balance after 10 years if no money was withdrawn.

• $2000

• $7000

• $7454.16

• $5169.19

Jill's parents created a college fund with $6000 when she was 5 years old. If it earned 4% interest compounded weekly, how much money is in the account when Jill turned 18 years old.

• $81,120

• $10,090.15

• $12,323.19

• $7327.85

How much should Larry invest in an account that pays 6% interest compounded semiannually if he aims to have $20000 5 years from now?

• $1450.76

• $6000

• $14,881.88

• $26,878.33

You plan to invest $5000 for college in 3 years, which account would be the best option?

• 5% compounding annually

• 5% compounding quarterly

• 5% compounding monthly

• 5% compounding daily

$17,000 was invested in an account that pays 1.5% interest compounding quarterly. After 8 years how much interest was earned?

• $2,163.15

• $19,163.15

• $38,216.43

• $55,216.43

You deposit $2000 in an account that earns 3.2% interest compounding annually. After how many years will you have at least $3000 in the account?

• 1 year

• 3 years

• 13 years

• 2 years

You win a $50,000 prize for your education. If you invest half of it in an account that earns 3% interest compounding daily, how much money will be in that account after 2 years?

• $53,045

• $26,522.50

• $53,091.70

• $26,545.85