Compound Interest

Jacob borrows $500 from Abraham and agrees to have the loan compounded annually for 5 years with an interest rate of 2.5%. How much will the total amount be that Jacob owes?

• $565.70

• $262609.38

• $65.70

• $630.20

Julia invested $1000 for college in an account earning 5% compounded annually. When she checked the account after 4 years, what was the balance in the account?

• Not enough

• $563.24

• $1215.51

• $3200.12

Daniel invests $360 in a bank account that is compounded annually for 8 years with an interest rate of 5.5%. What will be the total amount in the account after the 8 years is over?

• $625.88

• $950.12

• $315.45

• $552.49

Caiden deposited $475 in an account that pays an interest rate of 3.8% compounded annually. How much interest did he earn after 15 years?

• $787.35

• $337.35

• $225.62

• $554.87

You borrowed $10,000 for 2 years at 11% which was compounded annually. How much interest did you earn?

• $12,231

• $10,587.36

• $2,321

• $73,793.90

Your 3 year investment of $20,000 received 5.2% interest compounded annually. How much interest did you earn?

• $23,285.05

• $3,285.05

• $2,385

• $32,285