Compound Interest

Monthly means how many times a year?

• 4 
• 12
• 52
• 365

Daily means how many times a year?

• 4

• 12

• 52

• 365

Quarterly means how many times a year?

• 4

• 2

• 1

• 6

Semi-Annually means how many times a year?

• 4

• 2

• 1

• 6

If you are opening a savings account, is it better to have interest compounded daily or quarterly at 7%?

• Daily - so you earn money more often
• Quarterly - so you earn money less often
• who knows
• I need to consult my financial analyst

To earn as much interest as possible, you should open a savings account that earns ______ interest and has the _____ interest rate.

• compound; lowest
• simple ; lowest
• compound ; highest
• simple ; highest

When borrowing, to pay as little interest as possible, you should open a savings account that earns ______ interest and has the _____ interest rate.

• compound; lowest

• simple ; lowest

• compound ; highest

• simple ; highest

John just opened a savings account and wants to maximize the amount of interest he earns. Which of the following actions enable him to earn MORE interest?

• selecting an account with a higher interest rate
• leaving his money in the account for a long period of time
• transferring money into his checking account each month
• higher interest rate AND leaving money in for a longer time

When calculating interest, what do we always change the percent to?

• a fraction

• a decimal

• a round number

• Post Malone

Write the percent as a decimal. 
4.3%

• 4.3
• .43
• .043
• 4300