12 General Maths Compound Interest formulas

To find compound interest of an amount over a period of time, what do you times your principal by?

• i + 1

• 1 + i

• i/k + 1

• 1 + i/t

When finding the final amount of a value, which of these formulas will you use?

If Mr. Poore has $10,000 in an account that generates 9.25% interest, what will his first payment's formula look like?

When we are looking for the principal amount of an interest account, which of these would be the correct answer?

• True

• False

• True

• False

To solve a recurrence relation, you need to show you working out by...

• Creating a recurrence relation table

• Using the recurrence relation formula

• Writing down each of the steps with the formula

To show the actual interest rate of an interest rate with quarterly compounding periods, the equation would look like...

What is the interest rate in a percentage format of this amount: 1.0444

Assume it is per annum compounding annually

• 4.44%

• 104.44%

• 1.0444%

• 4%

To buy the brand new Hyundai i40, Mr. Poore saves up 10,000. If he places it into an account that returns 5% per annum compounding annually, how much will he acquire in 10 years?

• 16,288

• 17,164

• 14,659

• 15,978