Compound Interest

Compound interest means I earn...

• interest on my interest

• interest at the end of the year

• interest every month

• interest only once

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Simple Interest makes more money than Compound Interest

• True

• False

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What is the equation for compound interest?

• y=p(1+r)^t

• y=p(1-r)^t

• y=p(1+r/n)^nt

• y=p(1-n/r)ⁿ

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In the compound interest formula, n =

• the number of times compounded per year

• the interest rate

• the initial amount started with

• the number of years

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In the compound interest formula, P =

• the number of times compounded

• total amount in account

• the interest rate

• the principle - starting amount

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 $A=75\left(1+\frac{0.055}{4}\right)^{4\cdot3}$  

What is the rate for this compound interest formula?

• 55%

• 4%

• 5.5%

• 3%

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You have $900 invested in an account earning 5% compounded annually, how much do you have after 7 years?

• $907

• $1266

• $7031

• $1437

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$49,000 in an account at 9.8% compounded quarterly for 2 years

How much do you have after the 2 years?

• $59,469.16

• $59,074.60

• $103,517.74

• $59,074.60

In an account you have $31,300 at 8.2% compounded monthly for 6 years

How much do you have after those 6 years?

• $51,117.14

• $50,223.61

• $51,108.19

• $46,699.60

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How much INTEREST you would make if $50,000 was compounded monthly at 7% for 4 years?

• $1176.91

• $16102.69

• $66102.69

• $51176.91