Compound Interest Identification

Match the word to the correct value of n.

• n = 12

• monthly

• n = 2

• weekly

• n = 1

• quarterly

• n = 4

• annually

• n = 52

• semi-annually

If it is compounded daily, then n = (a)  

• 365
• 52
• 325
• 12
• 7
• 366

Change 6.75% to a decimal.

• 67.5
• .675
• 675
• .0675

Label each part of the formula

b

a

c

d

e

Time

End Amount

Principle

Compound Period

Rate

What does P represent in the equation A=P(1+r)^t

• rate

• principal

• time

• amount

What does r represent in the equation A=P(1+r)^t

• rate

• principal

• time

• amount

Which is the formula for calculating compound interest?

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Ivan deposits $5,000 into an account that pays compound interest at a rate of 5% per year compounded monthly . How much interest will he be paid in the first 3 years?

What is the principle? ​ (a)  

What is the rate? ​ (b)  

What is the time? ​ (c)  

How many times is the interest compounded per year? ​ (d)  

• $5,000
• 5%
• 3 years
• 12 times