Compounded Interest

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

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

Determine the number of years it will take for an investment of $30,000 earning 12% p.a. compounding quarterly to grow to $50,000.

Mathematical Equivalence

ON

Jacob borrows $500 from Abraham and agrees to have the loan compounded annually for 5 years with an interest rate of 2.5%. How much will the total amount be that Jacob owes?

• A

• 2.5%

• t

• $500

• r

• 5 years

• P

• Final Amount

• n

• Annually

Suppose you borrowed $3000 at a 9% interest rate for 4 years. If the loan involves compound interest, how much interest did you have to pay back? Which formula should I use? ​ ​ The question is asking me to find the ​

• a=p(1+r)^t

• interest

• the total amount in the account

• i=prt

If a loan is compounded​ (a)   then n will equal 12. If a loan is compounded daily then n will equal ​ (b)  

• monthly

• 365

• 1

• 360

• weekly

• yearly

Determine the number of years it will take for an investment of $30,000 with a 12% interest rate compounding quarterly to grow to $50,000. (round to one decimal place)

Mathematical Equivalence

ON

Number of times interest is compounded (n) annually ​ (a)   time , semi-annually ​ (b)   times, quarterly ​ (c)   times, and monthly ​ ​ (d)   times.

• 1

• 2

• 4

• 12

• 3

• 24

• 26

What does the n stand for in this formula?

• Initial amount

• Final amount

• Rate

• Time

• The number of times compounded per year