Mastering Compound Interest: Calculate & Identify Values

A bank offers a savings account with a principal of $1,000 and an annual interest rate of 5%. How much money will be in the account after 3 years if the interest is compounded annually?

• 1200.00

• 1157.63

• 1100.50

• 1050.25

If you invest $2,500 in a certificate of deposit (CD) that earns 4% interest compounded quarterly, how much will you have after 5 years?

• 3200.00

• 3050.47

• 2900.25

• 2500.00

You deposit $800 into an account that pays 6% interest compounded monthly. What will the total amount be after 2 years?

• 850.00

• 880.00

• 950.00

• 902.00

A loan of $5,000 is taken out with an interest rate of 7% compounded annually. How much will be owed after 4 years?

• $6,553.98

• $8,000.00

• $7,000.00

• $5,000.00

If you invest $1,200 at an interest rate of 3% compounded semi-annually, what will the total amount be after 6 years?

• 1200.00

• 1500.00

• 1434.74

• 1300.50

A student saves $1,500 for college in an account that earns 5% interest compounded annually. How much will the student have after 10 years?

• $1,800.00

• $2,000.00

• $3,000.00

• $2,443.34

Tags

CCSS.HSF-LE.A.1C

You want to save $10,000 for a car in 5 years. If the bank offers an interest rate of 4% compounded annually, how much do you need to deposit now?

• $8,220.79

• $8,000.00

• $7,500.00

• $9,000.00

A retirement account has a principal of $15,000 and earns 8% interest compounded quarterly. How much will be in the account after 20 years?

• 60000.00

• 69975.00

• 85000.00

• 50000.00

Tags

CCSS.HSF-LE.A.1C

If you invest $3,000 in a fund that offers 6% interest compounded monthly, how much will you have after 3 years?

• 3400.75

• 3589.04

• 3500.00

• 3700.50

A business takes a loan of $20,000 at an interest rate of 5% compounded annually. What will be the total amount to be repaid after 5 years?

• $22,000.00

• $30,000.00

• $25,525.63

• $27,500.00