Mastering Compound Interest: Calculate and Identify Values

Sarah invests $1,000 in a savings account that offers an annual interest rate of 5% compounded annually. How much money will she have in the account after 3 years?

• 1050.25

• 1200.00

• 1157.63

• 1100.50

John deposits $2,500 into a bank account with a 4% annual interest rate compounded quarterly. What will be the total amount in his account after 5 years?

• 2500.00

• 3050.47

• 3200.00

• 2900.50

A company invests $10,000 in a project that yields a 6% annual interest rate compounded annually. How much will the investment be worth after 4 years?

• 15000.00

• 12000.00

• 12624.77

• 10400.00

Emily wants to save for a new car. She puts $3,000 in a savings account with a 3% interest rate compounded semi-annually. How much will she have after 2 years?

• 3184.09

• 2500.00

• 3500.00

• 3000.00

Mark has $5,000 to invest in a bond that pays 7% interest compounded annually. How much will he have after 6 years?

• 7424.06

• 6000.00

• 8000.00

• 5000.00

A student takes a loan of $1,200 at an interest rate of 8% compounded annually. How much will he owe after 3 years?

• 1511.65

• 1296.00

• 1200.00

• 1450.00

Lisa invests $4,000 in a retirement account that earns 5% interest compounded monthly. What will be the total amount in her account after 10 years?

• $7,200.50

• $8,000.00

• $6,588.04

• $5,000.00

Tom deposits $6,000 in a bank that offers a 2.5% interest rate compounded quarterly. How much will he have after 8 years?

• 7328.32

• 6000.00

• 8000.00

• 7500.50

A small business owner invests $15,000 in a savings account with a 3.5% interest rate compounded annually. How much will the account be worth after 5 years?

• 18500.00

• 15000.00

• 20000.00

• 17815.32

Jessica wants to know how much her $2,000 investment will grow in 7 years if it earns 4% interest compounded annually. What will be the final amount?

• 2800.50

• 3000.00

• 2500.00

• 2632.14