Compound Interest and Credit Card Information

Jacob borrows $500 from Abraham and agrees to have the loan compounded annually for 5 years with an interest rate of 2.5%. How much will the total amount be that Jacob owes?

• $565.70

• $262609.38

• $65.70

• $630.20

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

• $1,584.62
• $2,651.39
• $2,706.86
• $1,825.10

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, how much total will she have paid after 8 years.

• $15,415.94
• $15,683.28
• $15,927.56
• $16,109.05

Courtney saved up $2,200 working as a waitress over the summer. She put this money into a bank account that earned 5.2% interest and is compounded daily. How much will she have in her account at the end of 4 years?

• $2201.25

• $2694.55

• $2707.45

• $2708.63

Henry deposits $750 into a college savings account that is compounded semiannually when his parents received as a stimulus package. If Henry lets the money sit in the account without adding or removing any and receives a 8.5% interest rate, how much money will he have total after 5 years?

• $1137.16

• $1535.24

• $2345.67

• $850.76

Katy deposited $90 in a savings account earning 5% interest, compounded quarterly. Which of the following equations could represent the amount of money in her account yearly?

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• 
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Derrick has $1,000 in a savings account that ears 15% interest, compounded monthly. To the nearest cent, how much will he have in 2 years?

• $5,350.25

• $1,322.50

• $1,025.16

• $1,347.35

The cost of credit expressed as a yearly interest rate is known as:

• Annual Percentage Rate (APR)

• Annual Fee

• Penalty APR

• Introductory Rate

What is an annual fee?

• The act of transferring money

• A fee charged by a card issuer for being a card holder.

• The days between the last statement and the current statement.

• A fee charged to a cardholder's account once a payment is late.

The cost of borrowing money is referred to as

• Interest

• Annual Percentage Rate

• Credit

• Credit Line