Compounding Interest Practice

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 total will she earn in 10 years?

• $4915.59

• $3933.28

• $2979.81

• $4005.09

You invest $1600 at an annual interest rate of 4.6% compounded continuously. How much will you have in the account after 4 years.

• $800.26

• $6,701.28

• $10,138.07

• $1,923.23

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

• $1,584.62

• $2,651.39

• $2,706.86

• $1,825.10

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

• $827.52

• $839.17

• $839.45

• $846.80

If $1,000 is invested at 16% interest, compounded continuously, for five years, what is the ending balance? The formula for continuously compounding interest is A = Pe^rt.

• $1,225,54

• $2,225.54

• $22,255.40

• $225.54

If you deposit $1,000 at 4.3% interest, compounded continuously, what would your ending balance be to the nearest cent after 5 years?

• $1,239.86

• $1,239.80

• $1,485

• $1,021.34

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

• $1,173.51

• $2,225.54

• $22,255.40

• $225.54

If you deposit $9,000 at 4.75% interest, compounded continuously, what would your ending balance be to the nearest cent after 3 years?

• 103,78.76

• 10,378.38

• 11,789.65

• 14,908.22

What does the n stand for in this formula?

• Initial amount

• Final amount

• Rate

• Time

• The number of times compounded per year

Austin puts $600.00 into an account for a rainy day fund. The account earns 9 4/5% interest, compounded continuously. How much will be in the account after 10 years?

• 786.88

• 968.99

• 1,152.89

• 1,598.67