Compound Interest

Semi-Annually means how many times a year?

• 4 
• 2
• 1
• 6

Tags

CCSS.3.MD.A.1

Change 6.75% to a decimal.

• 67.5
• .675
• 675
• .0675

Tags

CCSS.5.NBT.A.3

Monthly means how many times a year?

• 4 
• 12
• 52
• 365

Tags

CCSS.3.MD.A.1

You have $5,000 saved for a future family vacation. If the bank pays 4.3% compounded monthly for 3 years, which of the following shows the formula for this situation?

Riley invested $1,000 in savings bonds. If the bonds earn 6.75% interest compounded semi-annually, which of the following equations will show how much total will Riley earn in 15 years?

• $\left(1000(1+\frac{6.75}{2}\right)^{15}$

• $\left(1000(1+\frac{.0675}{2}\right)^{15}$

• $\left(1000(1+\frac{.0675}{2}\right)^{30}$

• $\left(1000(1+\frac{6.75}{2}\right)^{30}$

Gary deposited $500 in an account that earns 3% interest compounded annually. Which of the following equations could be used to determine the amount of the bank account after 6 years?