Compound Interest Quiz

In the formula for compound interest, what does the A stand for?

 $A=P\left(1+\frac{r}{n}\right)^{\left(n\right)\left(t\right)}$  

• Total of Interest and Principal

• Interest Only

• Andrew Jacksons (He's on the $20 bill)

• Accrued debt

Tags

CCSS.HSF.LE.B.5

In the formula for compound interest, what does the n stand for?

 $A=P\left(1+\frac{r}{n}\right)^{\left(n\right)\left(t\right)}$  

• Number of compounding periods per year

• Number of years

• Number of deposits

• Number of dollars

Tags

CCSS.HSF.LE.B.5

When using the formula for compound interest, what is the value of n if an account compounds annually?

 $A=P\left(1+\frac{r}{n}\right)^{nt}$  

• 1

• 2

• 4

• 12

Tags

CCSS.HSF.LE.A.1

CCSS.HSF.LE.A.2

CCSS.HSA.CED.A.4

When using the formula for compound interest, what is the value of n if an account compounds semi-annually?

 $A=P\left(1+\frac{r}{n}\right)^{nt}$  

• 1

• 2

• 4

• 12

Tags

CCSS.HSF.LE.A.1

CCSS.HSF.LE.A.2

CCSS.HSA.CED.A.4

When using the formula for compound interest, what is the value of n if an account compounds quarterly?

 $A=P\left(1+\frac{r}{n}\right)^{nt}$  

• 1

• 2

• 4

• 12

Tags

CCSS.HSF.LE.A.1

CCSS.HSF.LE.A.2

CCSS.HSA.SSE.A.1

CCSS.HSA.CED.A.4

When using the formula for compound interest, what is the value of n if an account compounds monthly?

 $A=P\left(1+\frac{r}{n}\right)^{nt}$  

• 1

• 2

• 4

• 12

Tags

CCSS.HSF.LE.A.1

CCSS.HSF.LE.A.2

CCSS.HSA.CED.A.4

A bank is offering 7% annual compound interest on a savings account.  If you deposit $1,500, what will be the total amount of money in your savings account after three years?

• $337.56
• $1837.56
• $31500
• $30000

Tags

CCSS.HSF.LE.A.1

CCSS.HSF.LE.A.2

CCSS.HSA.CED.A.1

CCSS.HSF.BF.A.1

A bank is offering 7% annual compound interest on a savings account. If you deposit $1,500, how much interest will you earn in three years?

• $1837.56

• $337.56

• $30000

• $31500

Tags

CCSS.HSF.LE.A.1

CCSS.HSF.LE.A.2

CCSS.HSA.CED.A.1

CCSS.HSA.SSE.A.1

CCSS.HSF.BF.A.1

Kara borrowed $21,000 for 5½ years at an annual compound interest rate of 7.5% to buy a car. What is the total amount she will repay the bank for the auto loan?

• $31258.30

• $10258.30

• $981750

• $27165

Tags

CCSS.HSF-LE.A.1C

A man invests $2,000 in an account that pays 8% interest compounded quarterly. What is the total amount he will have in his account after 10 years?

• $4,416.08

• $2,939,543.14

• $43,449.04

• $4,317.85

Tags

CCSS.HSF.LE.A.1

CCSS.HSF.LE.A.2

CCSS.HSA.CED.A.1

CCSS.HSA.SSE.A.1

CCSS.HSF.BF.A.1