Compound Interest

Lane 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 years?

• $827.52

• $831.10

• $839.45

• $846.80

Isobella’s parents put $1,500 in her bank account for college tuition. At an interest rate of 8.25% compounded semiannually, what will be the balance after 18 years?

• $6,273.50

• $6,314.08

• $6,385.72

• $6,427.94

Jack took a loan out for $25,690 to purchase a truck. At an interest rate of 5.2% compounded monthly, how much total will he have paid after 5 years?

• $33,299.42

• $33,672.68

• $34,157.04

• $34,710.88

Thalia 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

• $16,349.72

Jacob took out a loan for $195,000 to purchase a home. At a 4.3% interest rate compounded annually, how much interest will he have paid after 30 years?

• $412,749.79

• $429,305.61

• $471,259.27

• $494,546.99

Maddy won $3,000 from a radio contest. If she puts this money in a bank account that earns 2.9% interest compounded quarterly, how much interest will she earn in 10 years?

• $915.59

• $933.28

• $979.81

• $1,005.09

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

• $1,584.62

• $1,651.39

• $1,706.86

• $1,893.45

Town Bank offers a 2.25% interest rate, while Charter One offers 2.8%. Both banks compound interest annually. If Jacob wants to set up a new account with $5,000,how much more money will he earn at Charter One over Town Bank after 25 years?

• $1,183.41

• $1,209.79

• $1,251.63

• $1,324.10

Twelve years ago, Scarlett put $1,800 in an account that pays an interest rate of 2.5% compounded semiannually. She now plans to take the money in that account and invest it in another account that earns 4% interest compounded monthly. How much money will be in this new account after 7 years?

• $3,207.40

• $3,348.96

• $3,574.15

• $3,733.62

Ebony is buying a new Jet Ski for $12,500. She is considering two credit options. Option A offers a 6 year loan with 8.5% interest compounded quarterly, while Option B offers a 5 year loan with 10% interest compounded annually. Which is the better option and how much will she save?

• B; $573.83

• B; $495.21

• A; $573.83

• A; $495.21