Compounding Interest Practice

Caiden earned $475 from mowing lawns last summer.He deposited this money in an account that pays an interest rate of 3.8% compounded annually. What will be his balance after 15 years?

• $827.52                     (Mr. Williams)       
• $831.10                 (Mrs. Hoch)
• $839.45                    (Mr. Krajunus)
• $846.80                   (Ms. Palombo)

Emily’s parents put $1,500 in her bank account for college tuition. At an interest rate of 8.25% compounded semiannually,what will be the balance after 18 years?

• $6,273.50  frustrated
• $6,314.08 bewildered
• $6,385.72         pleased
• $6,427.94           tickled pink

Mark took a loan out for $25,690 to purchase a truck. At an interest rate of 5.2% compounded monthly, how much total will he have paid after 5 years?

• $33,299.42       playing dodgeball
• $33,672.68   climbing trees
• $34,157.04         riding unicycles
• $34,710.88      flipping pancakes

Olivia would like to buy some new furniture for her home. She decides to buy the furniture on credit with 9.5% interest compounded quarterly. If she spent $7,400, how much total will she have paid after 8 years?

• $15,415.94       LeBron James
• $15,683.28            Chase Utley
• $15,927.56       Serena Williams
• $16,349.72            Tom Brady

The Henley's took out a loan for $195,000 to purchase a home. At a 4.3% interest rate compounded annually,how much interest will they  have paid after 30 years?

• $412,749.79      Labor Day
• $429,305.61            the 4th of July
• $471,259.24  Groundhog Day
• $494,546.99 Valentine’s Day

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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 interest will she earn in 10 years?

• $915.59                Rome
• $933.28             Sydney
• $979.81               Dublin
• $1,005.09              Paris

Riley invested $1,000 in savings bonds. If the bonds earn 6.75% interest compounded semi-annually,how much interest will Riley earn in 15 years?

• $1,584.62                   the train station
• $1,651.39                   the movie theater
• $1,706.86                   the art museum
• $1,893.45                   the bakery

Town Bank offers a 2.25% interest rate, while Charter One offers 2.8%. Both banks compound interest annually. If Rob wants to set up a new account with $5,000,how much more money will he earn at Charter One over Town Bank after 25 years?

• $1,183.41                fairy wings
• $1,209.79             space suits
• $1,251.63          bubble wrap
• $1,324.10               hula skirts

Twelve years ago, Claire put $1,800 in an account that pays an interest rate of 2.5% compounded semiannually.She now plans to take the  money in that account and invest it in another account that earns 4% interest compounded monthly. How much money will be in this new account after 7 years?

• $3,207.40             eating ice cream 
• $3,348.96        chewing gum
• $3,574.15            telling math jokes
• $3,733.62                   tap dancing

Shawn is buying a new Jet Ski for $12,500. He is considering two credit options. Option A offers  a 6 year loan with 8.5% interest compounded quarterly, while Option B offers a 5 year loan with 10% interest compounded annually. Which is the better option and how much will he save?

• B; $573.83                  do something crazy
• B; $495.21                 get on the news
• A; $573.83                 get attention
• A; $495.21             raise money for charity