Compound Interest Formula

You borrowed $59,000 for 28 months at 11% which was compounded annually.  What total will you pay back?

• $32,351.18

• $11,363.90

• $75267.18

• $85,221.18

Steve deposited $5,050 in a savings account that pays 4.2% interest compounded annually.

Which equation could be used to find the value of the account after 3 years?

• A = 5,050(1 + 4)³

• A = 5,050(1 + 4.2/100)³

• A = 5,050(1 + .042/100) x 3

• A = 5,050(4.2/10)³

Your 5 year investment of $17,500 received 6.7% interest compounded annually. What is your total return?

• $22,205.05

• $6,702.50

• $2,385

• $24,202.50

Caiden earned $475 from mowing lawns last summer. He deposited this money in an account that pays an interest rate of 3.8% compounded annually. What will be his balance after 15 year?

• $827.52
• $831.10
• $839.45
• $846.80

If $1,000 is invested at 16% interest, compounded annually, for five years, what is the ending balance?

• $1,225,54

• $2,100.34

• $22,255.40

• $225.54

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

Steve invests $10,000 in a savings account that pays 4.75% compounded annually. If Steve makes no withdrawals or deposits to the account, how much will be in the account after 7 years?

• $10,300

• $3,838.16

• $13,838.16

• $1,383.81

The compound interest formula is:

A = P(1 + r)^t

What does the A represent?

• The amount of interest earned.

• The amount of time that has passed.

• The total amount of money after a certain amount of time.

• The amount required to invest.

Tags

CCSS.HSF-IF.C.8B

Your 3 year investment of $20,000 received 5.2% interest compounded annually. What is the interest you received?

• $23,285.05

• $3,285.05

• $2,385

• $32,285

Tags

CCSS.HSF-LE.A.1C