5.5 & 5.6 Review

Malik Fulton's savings account has a principal of $1,640.  It earns 6% interest compounded quarterly.  What is the amount at the end of the second quarter (2 periods)?

• $1,643.23

• $1,657.89

• $1,689.57

• $1,897.67

Ginger Yiu has a principal of $900 in her savings account.  It earns 6% interest compounded quarterly.  What is the amount in the account at the end of the third quarter (3 periods)?

• $935.67

• $941.11

• $945.22

• $944.59

Yujin Pon has a principal of $900 in her savings account on October 1.  The money earns interest at a rate of 6.5% compounded quarterly until July 1 of the following year.  What is the amount in the account on July 1 (3 periods)?

• $914.63

• $943.75

• $943.87

• $944.59

Use the table from Lesson 5.6.  Home City Bank pays 5% interest compounded quarterly on regular savings accounts.  Miguel Cardosa deposited $1,000 for 1 year.  He made no other deposits or withdrawals.  How much interest did he earn during the year (step 5)?

• $35.70

• $40.67

• $45.75

• $50.94

Use the table from Lesson 5.6.  When their child was born, Elaine and Mike Porter deposited $5,000 in a savings account at Tennessee Trust.  The money earns interest at 6% compounded quarterly.  How much will the account be worth in two years (step 4)?

• $5,550.75

• $5,575.55

• $5,632.45

• $5,675.95

The percent of the principal earned as interest in one year is called the _.

A chart that shows the amount of $1.00 for many interest rates and interest periods is called a _.

Oscar Montez's savings account has a principal of $7,201.  It earns 6% interest compounded quarterly.  What is the amount in the account at the end of the second quarter (2 periods)?

Mathematical Equivalence

ON

Use the formula for compound interest in your 5.6 notes.  Monique Fournier deposited $12,500 into a savings account paying 6.5% annual interest compounded monthly. 

What amount will she have in her account after 3 years?

Mathematical Equivalence

ON

Use the formula for compound interest in your 5.6 notes.  Monique Fournier deposited $12,500 into a savings account paying 6.5% annual interest compounded monthly. 

How much compound interest will she have earned?

Mathematical Equivalence

ON