Future Value Calculations: Exponential Growth Quiz

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

• 1050.75

• 1157.63

• 1200.00

You invest $2,500 in a certificate of deposit that earns 4% interest compounded quarterly. What will be the total amount in the account after 5 years?

• 3050.47

• 3200.00

• 2900.25

• 2500.00

A loan of $10,000 is taken out at an interest rate of 6% compounded annually. How much will be owed after 4 years?

• $10,000.00

• $11,500.50

• $13,000.00

• $12,624.77

If you want to have $5,000 in 10 years and the bank offers an interest rate of 3% compounded annually, how much do you need to invest today?

• 3000.00

• 3718.18

• 4500.00

• 2500.00

You plan to save $1,200 each year in an account that earns 7% interest compounded annually. How much will you have saved after 5 years?

• 6200.75

• 8000.50

• 6900.84

• 5000.00

A car dealership offers financing at an interest rate of 8% compounded monthly. If you finance $15,000 for 3 years, what will be the total amount paid at the end of the loan?

• 20500.50

• 19255.20

• 18000.00

• 21000.75

You invest $8,000 in a mutual fund that has an annual return of 10% compounded annually. What will be the value of your investment after 6 years?

• 14172.49

• 13000.00

• 15000.00

• 12000.00

If you have $3,000 in a savings account that earns 2% interest compounded semi-annually, how much will you have after 4 years?

• 3000.00

• 3100.50

• 3248.57

• 3500.00

A student takes out a loan of $5,000 at an interest rate of 5% compounded annually. How much will the student owe after 2 years?

• $5,512.50

• $5,750.00

• $5,000.00

• $5,250.00

You want to accumulate $20,000 for a down payment on a house in 8 years. If the bank offers an interest rate of 4% compounded annually, how much do you need to invest today?

• 15000.00

• 14673.57

• 18000.00

• 20000.00