Unit 5 Compounding Interest

Match the following

• 2 times

• annually

• 1 time

• quarterly

• 4 times

• monthly

• 12 times

• daily

• 365 times

• biannually

Tags

CCSS.HSF-LE.A.1C

Label each part of the formula

b

a

c

d

e

End Amount

Principle/Start Point

Rate

Time

Compound Period

Tags

CCSS.HSF-IF.C.8B

Jacob borrows $500 from Abraham and agrees to have the loan compounded quarterly for 5 years with an interest rate of 2.5%. How much will the total amount be that Jacob owes?

• n

• 5 years

• t

• .025

• P

• $500

• r

• Quarterly (4)

Match to the formulas needed:

• for compound interest for specific time

• basic/slang exponential setup

• for compounding continuously

• A = Pe^rt

Kennedy 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 total will she earn in 10 years?

• $4915.59
• $3933.28
• $2979.81
• $4005.09

You invest $1600 at an annual interest rate of 4.6% compounded continuously. How much will you have in the account after 4 years.

• $800.26
• $6,701.28
• $10,138.07
• $1,923.23

Compound interest is being calculated with f(x) = 5000(1 + .05)^4x

What is the real rate? (best trap on the test)

• 5%

• 10%

• 20%

• 40%

In the year 2000, $5000 is invested at 6% interest compounded monthly. In what year will the account's value triple?

• 2016

• 2018

• 2020

• 2022

• 2024

Tags

CCSS.HSF.LE.A.4

Trap alert: Convert to exponential form: 2 = log_3x(36)

• 3x² = 36

• (3x)² = 36

Tags

CCSS.HSF.BF.B.5

In math problems,

X is ​ (a)  

Y is the subject ​ (b)  

• money, population, etc
• time

Tags

CCSS.HSA.CED.A.4