Unit 24: Continuously Compounding Interest/Growth and Decay

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

25% as a decimal:  

• 0.25
• 02.5
• 25
• 2500

2% as a decimal:

• 0.02
• 0.2
• 2
• 20

18% as a decimal:

• 0.18
• 18
• 1.8
• 0.81

10% as a decimal:

• 0.01
• 0.1
• 1.0
• 10

6% as a decimal:  

• 0.06
• 0.6
• 6
• 600

A new online bank is offering customers a savings account that will compound interest continuously at a rate of 2.5%. Nick wants to deposit $20000 into this account. What amount should Nick expect to have after 4 years?

• $22103.42

• $31844.12

• $23456.09

• $2455.99

Semi-Annually means how many times a year?

• 4 
• 2
• 1
• 6

Monthly means how many times a year?

• 4 
• 12
• 52
• 365

Tags

CCSS.4.MD.A.1

What does the r stand for in this formula?

• Initial amount

• Final amount

• Rate

• Time

• The number of times compounded per year