Compound Interest Formula and Compounding Continuously

Which of the following exponential equations is the formula for compound interest?

• 
• 
• 
• 

Tags

CCSS.HSF.LE.A.1

CCSS.HSF.LE.A.2

What does the n stand for in this formula?

• Initial amount

• Final amount

• Rate

• Time

• The number of times compounded per year

What does the r stand for in this formula?

• Initial amount

• Final amount

• Rate

• Time

• The number of times compounded per year

Tags

CCSS.HSF-IF.C.8B

Change 6.5% to a decimal

• .65

• 6.5

• .065

• .065%

Tags

CCSS.5.NBT.A.3

What does the P stand for in this formula?

• Initial amount

• Final amount

• Rate

• Time

• The number of times compounded per year

Tags

CCSS.HSF-IF.C.8B

Quarterly means how many times a year?

• 4

• 2

• 1

• 6

Tags

CCSS.8.EE.C.7B

Annually means how many times a year?

• 4

• 2

• 1

• 6

Tags

CCSS.8.EE.C.7B

Semi-Annually means how many times a year?

• 4

• 2

• 1

• 6

Tags

CCSS.4.MD.A.2

Monthly means how many times a year?

• 4

• 12

• 52

• 365

Steve deposited $5,000 in a savings account that pays 4% interest compounded annually.

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

• A = 5,000(1 + 4)³

• A = 5,000(1 + 0.04)³

• A = 5,000(1 + 0.4) x 3

• A = 5,000(0.04)³

Tags

CCSS.HSF.LE.A.1

CCSS.HSF.LE.A.2

CCSS.HSF.BF.A.1

CCSS.HSF.LE.B.5