Calculating Compound Interest Quiz

What do you do in the second step of calculating compound interest using a table?

• Subtract the principal from the amount calculated

• Use the number of years and interest rate to find the amount for $1.00 compounded daily

• Multiply your principal investment by the amount found

• Add the interest rate to the principal

What is the final step in finding compound interest using a table?

• Subtract the principal from the amount calculated in step 2

• Multiply the principal by the interest rate

• Use the number of years and interest rate to find the amount for $1.00 compounded daily

• Add the interest to the principal

How do you find the compound interest earned after calculating the amount in step 2?

• Add the principal to the amount calculated

• Subtract the principal from the amount calculated

• Multiply the principal by the interest rate

• Divide the amount by the number of years

What is the amount for $1.00 compounded daily at 5.00% interest after 3 years?

• 1.162

• 1.171

• 1.188

• 1.197

At a 6.00% interest rate, what is the amount for $1.00 compounded daily after 7 years?

• 1.522

• 1.496

• 1.471

• 1.444

What is the amount for $1.00 compounded daily at 5.25% interest after 9 years?

• 1.604

• 1.568

• 1.640

• 1.690

For a 14-year investment at 6.25% interest, what is the amount for $1.00 compounded daily?

• 2.316

• 2.237

• 2.399

• 2.253

What is the first step in calculating compound interest using a table?

• Subtract the principal from the total amount

• Find the amount on the table for $1.00 compounded daily

• Multiply the principal by the interest rate

• Divide the total amount by the number of years

If Jimmy Durante deposited $2,000 at 5.25% interest compounded daily for 14 years, what is the amount in the account at the end?

• $3,000

• $4,170

• $2,500

• $3,500

What is the compound interest earned by Deanne Kimmel after 12 years?

• $1,581

• $1,000

• $2,000

• $1,200