Compound Interest

Chris earned $475 from mowing lawns last summer. He deposited this money in an account that pays an interest rate of 3.8% compounded annually. What will be his balance after 15 years?

• $827.52

• $831.10

• $839.45

• $846.80

• $852.25

Mackenzie's parents put $1,500 in her bank account for college tuition. At an interest rate of 8.25% compounded semi-annually, what will be the balance after 18 years?

• $6,273.50

• $6,314.08

• $6,385.72

• $6,427.94

• $6,502.38

Dina took a loan out for $25,690 to purchase a truck. At an interest rate of 5.2% compounded monthly, how much total will he have paid after 5 years?

• $33,299.42

• $33,672.68

• $34,157.04

• $34,389.55

• $34,710.88

Robyn won $3,000 from a radio contest. If she puts this money in a bank account that earns 2.9% interest compounded quarterly, how much interest will she earn in 10 years?

• $915.59

• $933.28

• $979.81

• $1,005.09

• $1,124.65

Tony invested $1,000 in savings bonds. If the bonds earn 6.75% interest compounded semi-annually, how much interest will Riley earn in 15 years?

• $1,584.62

• $1,651.39

• $1,706.86

• $1,825.10

• $1,893.45

RJ is buying a new Jet Ski for $12,500. He is considering two credit options. Option A offers a 6 year loan with 8.5% interest compounded quarterly, while Option B offers a 5 year loan with 10% interest compounded annually. Which is the better option and how much will he save?

• Option A

  $495.21

• Option A

  $573.83

• Option B

  $495.21

• Option B

  $573.83