Mastering Compound Interest Concepts

Rohan is considering opening a savings account that offers 7% annual compound interest. If he deposits $1,500, what will be the total amount of money in his savings account after three years?

• $337.56

• $1837.56

• $31500

• $30000

Abigail opened a savings account with a bank offering 7% annual compound interest. If she deposits $1,500, how much interest will she earn in three years?

• $1837.56

• $337.56

• $30000

• $31500

Katy deposited $90 in a savings account earning 5% interest, compounded quarterly. Which of the following equations could represent the amount of money in her account yearly?

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Which of the following exponential equations is the formula for compound interest?

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Both Ryan and Tom open their accounts with an initial deposit of $3500. They are both planning a six-year investment and will withdraw their money after 6 years. Who will have a greater balance in six years? How much more will that person have?

• Tom will have $83.77 more than Ryan.

• Ryan will have $83.77 more than Tom.

• Ryan will have $3416.23 more than Tom.

• Tom will have $3416.23 more than Ryan.

Grace invested a principal amount of $5000 at an annual interest rate of 5% compounded annually. What will be the amount after 3 years?

• $5788.13

• $5762.50

• $5525.00

• $5250.00

Identify the principal amount and the rate of interest from the following statement: "An investment grows to $2000 in 5 years at an annual interest rate of 4% compounded annually."

• Principal: $2000, Rate: 4%

• Principal: $1923.08, Rate: 4%

• Principal: $2000, Rate: 5%

• Principal: $1923.08, Rate: 5%

Sophia is planning to invest her savings in a bank account that compounds interest semi-annually. How many compounding periods will there be in 4 years?

• 4

• 8

• 2

• 6

Arjun wants to invest his savings in a bank account that offers compound interest. Which of the following is the correct formula for calculating the amount he will have after a certain period?

Elijah wants to know how long it will take for his savings to double if he invests them at an annual interest rate of 6% compounded annually. Can you help him figure it out?

• 11.9 years

• 12.2 years

• 13.5 years

• 14.7 years