Compound Interest Notes Check

In the compound interest formula A=P(1+r)^t what does the A stand for?

• The amount of interest

• The total amount

• The interest rate

• The time

In the compound interest formula A=P(1+r)^t what does the P stand for?

• The time

• The total amount

• The principal amount (original amount)

• The interest rate

If you wanted to amount of interest an account has earned after being compounded annually. What would you have to do after you found "A" using the formula A=P(1+r)^t ?

• Add A (total amount) plus P (original amount)

• Subtract A (total amount from P (original amount)

• Add P (original amount) plus A (total amount)

• Subtract P (original amount) from A (total amount)

What number is P in question 1?

• 7,000

• 4.75/100

• 5

• 4.75%

What number is r in question 1?

• 7,000

• 4.75/100

• 5

• 4.75%

What number is t in question 1?

• 7,000

• 4.75/100

• 5

• 4.75%

What is the answer to question 1?

What is the value of P in question 2?

• 2,380

• 3.25%

• 4

• 3.25/100

What is the value of r in question 2?

• 2,380

• 3.25%

• 4

• 3.25/100

What is the value of t in question 2?

• 2,380

• 3.25%

• 4

• 3.25/100