MM-FIND COMPOUND INTEREST

If interest is compounded annually, how many times a year will interest be paid?

• 1

• 2

• 4

• 12

• 365

If interest is compounded quarterly, how many times a year will interest be paid?

• 1

• 2

• 4

• 12

• 365

Which of the following types of compounded interest structures will have 12 interest payments a year?

• Annually

• Semi-Annually

• Quarterly

• Monthly

• Daily

A home is purchased in the Raleigh area for $250,000. The home value is expected to increase at 3% annually.

Is this an example of exponential growth or exponential decay?

• Growth because the value is expected to increase.

• Growth because the value is expected to decrease.

• Decay because the value is expected to increase.

• Decay because the value is expected to decrease.

A new car is purchased in the Raleigh area for $30,000. The car value is expected to decrease at 12% annually.

Is this an example of exponential growth or exponential decay?

• Growth because the value is expected to increase.

• Growth because the value is expected to decrease.

• Decay because the value is expected to increase.

• Decay because the value is expected to decrease.

Mary invests $5,000 into a CD account at the local bank. The account pays 3.2% interest, compounded monthly, for the next 5 years.

What is the principle amount in the problem?

• $5,000

• 3.2%

• 5 years

• 12

Mary invests $5,000 into a CD account at the local bank. The account pays 3.2% interest, compounded monthly, for the next 5 years.

What is the rate in the problem?

• $5,000

• 3.2%

• 5 years

• 12

A boat loses 15% of its value annually. If the boat was purchased for $100,000 and will be sold in 20 years.

Which of the following is the principle value in the situation?

• 15%

• $100,000

• 20 years

• $3,875

What is 32% written as a decimal?

• 32

• 3.2

• 0.32

• 0.032

What is 8% written as a decimal?

• 8

• 0.8

• 0.08

• 0.008