Compounding Interest Practice

What is "n" if the interest is compounded quarterly?

• 1

• 12

• 2

• 4

Cora invested $400 at a rate of 35% for 8 months, compounded continuously. How much is her investment worth after 8 months?

• $520.07

• $505.12

• $460.11

• $7,643.74

Which of these circumstances would require the formula A=Pe^rt ?

• Daily

• Monthly

• Quarterly

• Continuously

• total amount

• principal

• interest rate (decimal)

• time (years)

• initial amount

• rate of interest

• number of times compounded in a month

• time (months)

• interest rate (percentage)

• number of times compounded in a year

• $128,660
• $166,280
• $175,335
• $250,354

Determine the balance in the account if you deposited $4,000 at an interest rate of 3.4% compounded quarterly for three years.

• $4422.03

• $4427.62

• $4428.90

• $4429.51

Determine the balance in the account if you deposited $4,000 at an interest rate of 3.4% compounded monthly for three years.

• $4422.03

• $4427.62

• $4428.90

• $4429.51

If $1,000 is invested at 16% interest, compounded continuously, for five years, what is the ending balance?

• $1,225,54

• $2,225.54

• $22,255.40

• $225.54

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 year?

• $827.52

• $831.10

• $839.45

• $846.80

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

• $412,749.79

• $529.305.61

• $689,546.99

• $640,891.53