Compound Interest

Caiden earned $475 from mowing lawns last summer. He deposited this money in an account that pays an interest rate of 3.8% compounded annually. What will be his balance after 15 years?

• $827.52                      

• $831.10                

• $839.45                  

• $846.80                  

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

• $6,314.08

• $6,385.72        

• $6,427.94          

You invest $1600 at an annual interest rate of 4.6% compounded continuously. How much will you have in the account after 4 years.

• $1,923.23

• $10,138.07

• $6,701.28

• $800.26

Answer explanation

1600e^.046(4)

If $1,000 is invested at 16% interest, compounded continuously, for five years, what is the ending balance?

• $1,225,54

• $2,225.54

• $22,255.40

• $225.54

Answer explanation

1000e^.16(5)

Karla invested $1,000 in savings bonds. If the bonds earn 6.75% interest compounded semi-annually.

Which exponential equation can be used to find how much money Karla will earn in 15 years?

Suppose you invest that same $3,000 from before. This time the 6% annually will be compounded semi-annually (twice a year), for 5 years. 

Which expression represents the situation?  

• Initial amount

• Rate

• Time

• The number of times compounded per year

• Compounded n times per year

• Compounded continously

• Initial amount

• Rate

• Time

• The number of times compounded per year

• Initial amount

• Final amount

• Rate

• Time