Future Value and Interest Rate Comparison Quiz

If you invest $1,000 in a savings account with an annual interest rate of 5%, compounded annually, how much money will you have after 3 years?

• 1157.63

• 1200.00

• 1100.50

• 1050.75

Sarah has $2,000 to invest in a certificate of deposit (CD) that offers a 4% annual interest rate, compounded quarterly. What will be the total amount in her account after 5 years?

• $2,440.38

• $3,000.00

• $2,000.00

• $2,500.00

John is comparing two savings accounts. Account A offers a 3% interest rate compounded annually, while Account B offers a 2.5% interest rate compounded monthly. If he invests $1,500 in each account for 4 years, which account will yield more money?

• Account A

• Account A with monthly compounding

• Account B

• Account A with 2% interest

A loan of $5,000 is taken out at an interest rate of 6% compounded annually. How much will the total amount owed be after 2 years?

• $5,800

• $6,000

• $5,300

• 5618.30

Tags

CCSS.HSF.BF.A.2

Emily invests $800 in a mutual fund that has a 7% annual interest rate, compounded semi-annually. What will be the future value of her investment after 4 years?

• 1052.86

• 950.75

• 1200.50

• 900.00

If a bank offers a 5% interest rate compounded monthly, how much will $2,500 grow to after 3 years?

• 3100.00

• 2800.00

• 2904.00

• 2500.00

Mark wants to save for a new car and plans to invest $3,000 in a savings account with a 4.5% interest rate compounded annually. How much will he have after 6 years?

• 4200.50

• 4000.00

• 3500.00

• 3851.04

Tags

CCSS.HSF.BF.A.2

Compare the future values of two investments: Investment X is $1,200 at 5% compounded annually for 5 years, and Investment Y is $1,200 at 4.5% compounded quarterly for the same period. Which investment is better?

• Investment Y is better.

• Both investments are equal.

• Neither investment is worthwhile.

• Investment X is better.

A student takes a loan of $10,000 at an interest rate of 8% compounded annually. How much will he owe after 3 years?

• $11,500.00

• $13,000.00

• $10,800.00

• $12,597.12

If you deposit $1,500 in a bank that offers a 3.5% interest rate compounded monthly, what will be the total amount in the account after 2 years?

• $1,800.00

• $1,607.66

• $1,500.00

• $1,400.00