Mastering Compound Interest: Calculating Time & Growth

A bank offers a savings account with an annual interest rate of 5% compounded annually. If you deposit $1,000, how much will you have in the account after 3 years?

• 1100.50

• 1200.00

• 1157.63

• 1050.75

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

• 2500.00

• 3050.47

• 2900.25

• 3200.00

If you want to have $10,000 in your savings account in 6 years and the bank offers an interest rate of 3% compounded annually, how much do you need to deposit now?

• 7500.00

• 9000.00

• 10000.00

• 8396.62

A loan of $5,000 is taken out at an interest rate of 6% compounded semi-annually. How much will be owed after 4 years?

• 5000.00

• 6000.00

• 7000.00

• 6333.85

You plan to save $1,200 each year in an account that earns 7% interest compounded annually. How much will you have saved after 10 years?

• $10,000.00

• $15,000.00

• $18,000.00

• $16,452.82

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If you invest $800 at an interest rate of 5% compounded monthly, how much will you have after 2 years?

• 875.50

• 883.59

• 900.00

• 850.00

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

• $3,779.14

• $2,400.00

• $3,500.00

• $4,000.00

You want to accumulate $15,000 for a car in 5 years. If your investment earns 4% interest compounded annually, how much do you need to invest today?

• 12310.80

• 20000.00

• 10000.00

• 15000.00

A retirement account has an initial balance of $10,000 and earns 6% interest compounded annually. What will the balance be after 20 years?

• 32071.35

• 15000.00

• 25000.00

• 40000.00

If you invest $1,500 in a fund that offers 5% interest compounded quarterly, how much will you have after 4 years?

• 1500.00

• 1832.08

• 2000.00

• 1750.50