Continuously compounded Interest Practice Quiz

If $1,000 is invested at 16% interest, compounded continuously, for five years, what is the ending balance?

• $1,225,54
• $2,225.54
• $22,255.40
• $225.54

Tags

CCSS.HSA.CED.A.1

CCSS.HSF.LE.A.1

CCSS.HSF.LE.A.2

CCSS.HSF.LE.B.5

Your 3 year investment of $20,000 received 5.2% interest compounded annually.  What is your total return?

• $23,285.05
• $3,285.05
• $2,385
• $32,285

Tags

CCSS.HSA.CED.A.1

CCSS.HSF.LE.A.1

CCSS.HSF.LE.A.2

CCSS.HSA.SSE.A.1

CCSS.HSF.BF.A.1

You borrowed $59,000 for 2 years at 11% which was compounded annually.  What total will you pay back?

• $13,693.90
• $1,363.90
• $72,693.90
• $73,793.90

Tags

CCSS.HSA.CED.A.1

CCSS.HSF.LE.A.1

CCSS.HSF.LE.A.2

CCSS.HSA.SSE.A.1

CCSS.HSF.BF.A.1

CCSS.HSA.SSE.B.4

Your 6 year investment of $40,000 at 14% interest compounded annually is worth how much now?

• $47,798.90
• $87,798.90
• $127,798
• $7,798

Tags

CCSS.HSF-LE.A.1C

Change 6.75% to a decimal.

• 67.5
• .675
• 675
• .0675

Tags

CCSS.5.NBT.A.3

Compounded Continuously Invested $400 at a rate of 35% for 8 months

• $520.07
• $505.12
• $460.11
• $7,643.74

Tags

CCSS.HSA.CED.A.1

CCSS.HSF.LE.A.1

CCSS.HSF.LE.A.2

CCSS.HSF.LE.B.5

What is the formula for Annual compounded continuously

• A(t) = Pert

• A(t)= Prt

• A(t) = Pe^rt

• P = e^rt

Check all the boxes that have a correct statement about the number "e"

• e is the rational number 2.7

• e is used when interest is compounded daily

• e is the irrational number whose first 6 digits are 2.71828

• e is used when interest is compounded continuously

IN my notes, What is the first step when solving continuously compounded interest equations?

• Put in calculator

• Plug values into variables

• Find what the variables are

• Write the formula a(t) = Pe^rt

What does the P stand for in the A(t) = Pe^rt

• Interest

• Principal

• time

• party