Review of Compound Interest

What is the formula for compound interest?

• A = P(1 - r/n)^(nt)

• A = P(1 + r)^n

• A = P(1 + r/n)^(nt)

• A = P(1 - r)^t

If the principal amount is $1000, the interest rate is 5%, and the time period is 3 years compounded annually, what will be the amount after 3 years?

• $1157.63

• $1250.00

• $1200.00

• $1100.00

Calculate the compound interest on an amount of $2000 at 10% for 2 years compounded annually.

• The compound interest is $200.00

• The compound interest is $1000.00

• The compound interest is $420.00

• The compound interest is $500.00

If the principal amount is $5000, the interest rate is 8%, and the time period is 5 years compounded semiannually, what will be the compound interest?

• The compound interest will be $7401.22

• The compound interest will be $500.40.

• The compound interest will be $800.00.

• The compound interest will be $1000.00.

What will be the amount if $8000 is invested at 12% compounded quarterly for 3 years?

• $11,500.00

• $9,200.00

• $10,000.00

• $11,406.09

Find the compound interest on $3000 at 7% annually for 2 years compounded semi-annually.

• The compound interest is $442.57

• The compound interest is $500

• The compound interest is $350

• The compound interest is $200

If the principal amount is $4000, the interest rate is 6%, and the time period is 4 years compounded monthly, what will be the amount after 4 years?

• The amount after 4 years will be $4,240.00.

• The amount after 4 years will be $4,500.00.

• The amount after 4 years will be $5,081.96.

• The amount after 4 years will be $5,200.00.

Calculate the compound interest on an amount of $6000 at 15% per year for 3 years compounded monthly.

• $9,750.00

• $9383.66

• $11,000.00

• $8,500.00

If the principal amount is $7000, the interest rate is 9%, and the time period is 6 years compounded quarterly, what will be the compound interest?

• The compound interest will be $1,000.

• The compound interest will be $4,000.

• The compound interest will be $11,940.37

• The compound interest will be $2,500.

What will be the amount if $9000 is invested at 18% compounded annually for 4 years?

• The amount will be $12,240.00

• The amount will be $10,080.00

• The amount will be $14,500.60

• The amount will be $17,449.00