Future Value & Interest Rate Comparisons for 9th Graders

If you invest $1,000 in a savings account with an annual interest rate of 5% compounded annually, what will be the future value of the investment after 3 years?

• 1050.75

• 1200.00

• 1157.63

• 1100.50

Compare two savings accounts: Account A offers 4% interest compounded annually, while Account B offers 3.5% compounded quarterly. If you invest $2,000 in each account for 5 years, which account will yield a higher future value?

• Both accounts yield the same future value.

• Account A yields a higher future value.

• Account B yields a higher future value.

• Account A yields a lower future value.

You deposit $500 into a bank account that offers 6% interest compounded monthly. How much money will you have in the account after 2 years?

• 575.50

• 600.00

• 563.74

• 550.00

A loan of $2,500 is taken out at an interest rate of 7% compounded annually. What will be the total amount owed after 4 years?

• $2,500.00

• $3,000.00

• $3,500.00

• $3,276.99

If you want to have $10,000 in 5 years and the bank offers an interest rate of 8% compounded annually, how much do you need to invest today?

• 6805.73

• 9000.00

• 7500.00

• 5000.00

You have two investment options: Option 1 offers 5% interest compounded annually, and Option 2 offers 4.5% compounded semi-annually. If you invest $1,500 in each for 6 years, which option will give you more money?

• Option 1 with 6% interest

• Neither option, both are equal

• Option 1

• Option 2

A retirement account has an initial balance of $15,000 and earns 5% interest compounded annually. What will the balance be after 10 years?

• 20000.00

• 15000.00

• 24433.35

• 30000.00

If you invest $2,000 at an interest rate of 3% compounded quarterly, what will be the future value after 4 years?

• 2254.98

• 2005.50

• 2400.00

• 2100.00

You are comparing two investment plans: Plan X offers 6% interest compounded monthly, while Plan Y offers 5.5% compounded annually. If you invest $3,000 in each for 3 years, which plan will result in a higher amount?

• Plan X with 5% interest

• Plan X

• Plan Y

• Plan Z with 6.5% interest compounded annually

A student saves $1,200 for college in an account that earns 4% interest compounded annually. How much will the student have saved after 8 years?

• $1,800.00

• $1,500.00

• $1,642.28

• $1,200.00