Compound Interest

Emily’s parents put $1,500 in her bank account for college tuition. At an interest rate of 8.25% compounded semiannually,what will be the balance after 18 years?

• $6,273.50  frustrated
• $6,314.08 bewildered
• $6,385.72         pleased
• $6,427.94           tickled pink

Mark took a loan out for $25,690 to purchase a truck. At an interest rate of 5.2% compounded monthly, how much total will he have paid after 5 years?

• $33,299.42       playing dodgeball
• $33,672.68   climbing trees
• $34,157.04         riding unicycles
• $34,710.88      flipping pancakes

Olivia would like to buy some new furniture for her home. She decides to buy the furniture on credit with 9.5% interest compounded quarterly. If she spent $7,400, how much total will she have paid after 8 years?

• $15,415.94       LeBron James
• $15,683.28            Chase Utley
• $15,927.56       Serena Williams
• $16,349.72            Tom Brady

Kennedy won $3,000 from a radio contest. If she puts this money in a bank account that earns 2.9% interest compounded quarterly, how much interest will she earn in 10 years?

• $915.59                Rome
• $933.28             Sydney
• $979.81               Dublin
• $1,005.09              Paris

Riley invested $1,000 in savings bonds. If the bonds earn 6.75% interest compounded semi-annually,how much interest will Riley earn in 15 years?

• $1,584.62                   the train station
• $1,651.39                   the movie theater
• $1,706.86                   the art museum
• $1,893.45                   the bakery

Semi-Annually means how many times a year?

• 4 
• 2
• 1
• 6

Principal: $5000
Interest Rate: 3.75%
Time: 25 years
Compounded Monthly
State the future account balance.

• $12712.31
• $12,749.30
• $12,657.59
• $12550.84

Monthly means how many times a year?

• 4

• 12

• 52

• 365

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

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Emily would like to buy some new furniture for her home. She decides to buy the furniture on credit with 9.5% interest compounded quarterly.

If she spent $7,400, what exponential equation can be used to find how much she will pay after 8 years.

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