Compound Interest Quiz

The compound interest formula is:

A = P(1 + ^r/_n)^nt

What does the A represent?_(1point)

• The amount of interest earned.

• The amount of time that has passed.

• The total amount of money after a certain amount of time.

• The amount required to invest.

Semi-Annually means how many times a year?_{(1 point)}

• 4

• 2

• 1

• 6

Riley invested $1,000 in savings bonds. If the bonds earn 6.75% interest compounded semi-annually, how much total will Riley earn in 15 years? _(3points)

• $1,584.62

• $2,651.39

• $2,706.86

• $1,825.10

Olivia 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. _(3points)

• $15,415.94

• $15,683.28

• $15,927.56

• $16,109.05

Principal: $5000

Interest Rate: 3.75%

Time: 25 years

Compounded Monthly

State the future account balance. _(3points)

• $12,712.31

• $12,749.30

• $12,657.59

• $12,550.84