Compound Interest Warm-Up

Paul deposits $4000 in a bank which pays a compound interest rate of 4% per year. How much will he have in 5 years.

What formula(s) should you use to solve this?

Select all that apply.

• A = P(1+r)^t

• I = Prt

• P + I = A

• a² + b² = c²

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

• $23,285.10

• $3,285.05

• $2,385

• $32,285

Tags

CCSS.HSF-LE.A.1C

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

• $13,693.90

• $1,363.90

• $72,693.90

• $73,793.90

Mark's 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

Emily’s parents put $1,500 in a savings for her college tuition when she was 5 years old. The savings account receives an interest rate of 8.25% compounded annually. What will be the balance of the account when she is 18 years old?

• $11,137.50

• $2,229.62

• $2,227.50

• $4,203.92