8th grade Unit 6 Test - Compound Interest

Joseph earns compound interest on an investment of $6,000 with an interest rate of 3%. How much money is his investment worth at the end of two years?

• $6,365.40

• $365.40

• $12,635.40

• $6,360.00

Aaron wants to buy an ATV that costs $7,500. He is going to take out a loan. He will pay a compound interest rate of 5%. If Aaron takes 2.5 years to pay back the loan, what will be the total amount he pays back on the loan?

• $8,472.95

• $937.50

• $8437.50

• $972.95

Veronica earns compound interest on an investment of $6,000 with an interest rate of 6.5%. Determine how much interest she will have earned after 5 years.

• $8,220.52

• $2,220.52

• $1,950.00

• $7,950.00

Wanda deposited $4,000 in to an account that earns 4% interest compounded annually. How much money will Wanda have after ten years?

• $5,920.98

• $1,920.98

• $115,701.86

• $111,701.86

Tags

CCSS.HSF-LE.A.1C

A student's parents invested $5,000 in a college savings account that pays 4.85% annual compound interest.

Which amount is closest to the interest earned on the account at the end of 15 years?

• $10,174.11

• $5,174.11

• $3,637.50

• $8,637.50

Tags

CCSS.HSF-LE.A.1C

Coach Levens deposited $1,250 into an account that earns 4.25% annual compound interest on the money in the account.

What was the balance in Coach's account at the end of 4 years?

• $1,476.43

• $226.43

• $212.50

• $1462.50

An employee put $5,000 in a retirement account that offers 9% interest compounded annually. Which amount is closest to the interest the employee will have earned at the end of 5 years?

• $229.09

• $450.00

• $2,250.00

• $2,693.12

Tags

CCSS.HSF-LE.A.1C

Nancy invested $6000 in a bond at a yearly compound interest rate of 3%. If she holds the bond for 15 years, how much interest will her investment earned?

• $9,347.80

• $3,347.80

• $3,824.39

• $9,824.39

Mr. Johnson borrowed $8000 for 4 years to make home improvements at a compound interest rate of 12%. How much does he have to repay in total?

• $12,588.15

• $4,588.15

• $8,390.97

• $390.97

To buy a laptop computer, Elaine borrowed $2,000 for 3 years at an annual compound interest rate of 5%. How much interest will she pay if she pays the entire loan off at the end of the third year?

• $2,315.25

• $315.25

• $327.80

• $2,327.80