Compound Interest & Solving Exponential Equations

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?

• $1,584.62
• $2,651.39
• $2,706.86
• $1,825.10

Heather invested $8,000 in a 4-year Certificate of Deposit (CD) that pays 4.1% interest compounded annually. What is the value of the CD at the end of the 4 years?

• $9,394.92

• $9,312.00

• $1394.00

• $1312.00

Zach's parents put $1,500 in his bank account for college tuition. At an interest rate of 8.25% compounded semi-annually, what will be the balance after 18 years?

• $6,273.50

• $6,314.08

• $6,385.72

• $6,427.94

Treasure 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 total will she have in 10 years?

• $4915.59

• $3933.28

• $2979.81

• $4005.09

Johnny takes an unknown amount of money and deposits it in a bank at an interest rate of 2%. He leaves the money in the account for 6 years, compounded quarterly. If the Johnny withdraws after 6 years is $455,125, what was the original amount of money he deposited?

• $403 780

• $404 138

• $406 362

• $436 870

Emily 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

• $16,109.05

Change 6.75% to a decimal.

• 67.5
• .675
• 675
• .0675

In the compound interest formula A=P(1+r)^t what does the A stand for?

• The amount of interest

• The total final amount

• The interest rate

• The time

In the compound interest formula A=P(1+r)^t what does the P stand for?

• The time

• The total final amount

• The principal amount (original amount)

• The interest rate

Principal: $5000

Interest Rate: 3.75%

Time: 25 years

Compounded Monthly

State the ending account balance.

• $12712.31

• $12,749.30

• $12,657.59

• $12550.84