Interest Formula

What does the "I" in the interest formula stand for?

• Principal

• Interest

• Rate

• Time

Identify the correct formula for:            Mr. Krabs put $500 into an account when Pearl was born so that she could buy a boat when she turns 16. The account pays 6.35% interest, compounded quarterly. How much money will Pearl have when she turns 16

This formula is to calculate...

• The final amount including the principal value and the simple interest

• The simple interest you will receive

• The final amount including the principal value and the compound interest

• The compound interest you will receive

• The number of times compounded per year

What does the r stand for in this formula?

• Initial amount

• Final amount

• Interest Rate

• Time

• The number of times compounded per year

Principal: $5000
Interest Rate: 3.75%
Time: 25 years
Compounded Monthly
State the future account balance.

• $12712.31

• $12,749.30

• $12,657.59

• $12550.84

Jesus borrowed $59,000 for 2 years at 11% which was compounded annually. What is the total that he will end up owing after the 2 years?

• $13,693.90

• $1,363.90

• $72,693.90

• $73,793.90

Maya 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 (PROFIT) will she earn in 10 years?

• $3,178.48

• $4,005.09

• $979.81

• $1,005.09

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

• $2,706.86

• $1,651.39

• $1,706.86

• $1,893.45

Your 5 year investment of $17,500 received 6.7% interest compounded annually. What is your total return?

• $22,205.05

• $6,702.50

• $2,385

• $24,202.50

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