Compound Interest

 $A\left(x\right)=P\left(1+\frac{r}{n}\right)^{nt}$  is the Compound Interest Formula.  Write the formula down and use it for the remaining problems. 

• True

• True

 $A\left(x\right)=P\left(1+\frac{r}{n}\right)^{nt}$  In the compound interest formula what does the A stand for?

• The amount of interest

• The total amount

• The interest rate

• The time

 $A\left(x\right)=P\left(1+\frac{r}{n}\right)^{nt}$  In the compound interest formula, what does the P stand for?

• The time

• The total amount

• The principal amount (original amount)

• The interest rate

 $A\left(x\right)=P\left(1+\frac{r}{n}\right)^{nt}$  In the compound interest formula, what does the n stand for?

• The time

• The total amount

• The principal amount (original amount)

• The interest rate

• Number of times interest is compounded

 $A\left(x\right)=P\left(1+\frac{r}{n}\right)^{nt}$  In the compound interest formula, what does the r stand for?

• The time

• The total amount

• The principal amount (original amount)

• The interest rate

• Number of times interest is compounded

 $A\left(x\right)=P\left(1+\frac{r}{n}\right)^{nt}$  In the compound interest formula, what does the t stand for?

• The time (in years)

• The total amount

• The principal amount (original amount)

• The interest rate

• Number of times interest is compounded

Change 6.75% to a decimal.

• 67.5
• .675
• 675
• .0675

Semi-Annually means how many times a year?

• 4

• 2

• 1

• 6

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

Tags

CCSS.HSF-LE.A.1C

Zach's parents put $1,500 in her 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