Applications of Percentages

What does "compound interest" mean?

• Interest on the initial amount (principal) only

• "Interest on interest" - Interest on principal and earned interest

• A fixed yearly interest amount

• Interest added monthly.

Which formula represents compound interest?

A 10% increase followed by a 20% tax is an example of:

• A single percentage change

• Simple interest

• A compounded discount

• Consecutive percentage changes

What is the simple percentage change formula (i.e., calculating revenue growth year over year)?

• Projected Value = Original Value + (1 + Rate of Change x Time)

• Projected Value = (Original Value / Rate of Change)

• Projected Value = Original Value x (1 + Rate of Change x Time)

• Projected Value = Original Value x (Rate of Change / Time)

You invest $1,500 at an annual interest rate of 6%, compounded yearly, for 3 years. What is the total amount earned?

• $1,755.00

• $1,786.52

• $1,810.66

• $1,844.97

A $64 item is discounted by 25% and taxed at 10%. What's the final price?

• $49.50

• $50.60

• $51.70

• $52.80

A company's revenue increased from $500,000 in 2018 to $900,000 in 2022. What is the percentage increase?

• 75%

• 80%

• 85%

• 90%

A $1000 investment earns 4% interest compounded monthly for 3 years. Find the amount.

• $1,127.27

• $1,139.94

• $1,555.63

• $2,241.38

What happens when you increase compounding periods per year?

• The principal decreases

• Interest remains constant

• The final amount increases

• No change occurs.

A graph shows sales rising from $1,000 to $1,500 in 6 months. What's the percent increase for the period of time?

• 40%

• 50%

• 60%

• 70%