Compound Interest-mixed

What is the total balance for a loan of $400 compounded annually at a rate of 11% for 4 years?

• $500.00

• $607.23

• $450.50

• $550.75

What is the difference between simple interest and compound interest?

• Simple interest is calculated only on the principal amount, while compound interest is calculated on the principal plus any accumulated interest.

• Simple interest is calculated on the total amount after each period, while compound interest is calculated only on the principal.

• Simple interest is always higher than compound interest over time.

• Compound interest is calculated only on the principal amount, while simple interest is calculated on the principal plus any accumulated interest.

How does the frequency of compounding affect the total amount?

• The total amount remains the same regardless of compounding frequency.

• The more frequently interest is compounded, the more total interest will be earned or paid.

• Compounding frequency has no effect on the total amount.

• Less frequent compounding results in higher total interest.

What is the formula for the total amount A after t years with compound interest?

• A = P(1 + r/n)^(nt)

• A = P(1 + rt)

• A = P(1 + r)^t

• A = P(1 + r/n)^(n*t)

What does 'compounded annually' mean?

• Interest is calculated monthly on the principal only.

• Interest is calculated once a year on the principal and any accumulated interest.

• Interest is calculated daily on the principal and any accumulated interest.

• Interest is calculated biannually on the principal only.

How much interest is earned on $20 at a rate of 0.7% compounded annually for 2 years?

• $0.15

• $0.20

• $0.28

• $0.35

If a loan of $195,000 is taken at a 4.3% interest rate compounded annually, how much interest will be paid after 30 years?

• $494,546.99

• $300,000.00

• $450,000.00

• $600,000.00

If you invest $1000 at an interest rate of 5% compounded annually for 4 years, how much will you have?

• $1000.00

• $1104.00

• $1215.51

• $1300.00

What is the total amount in the account if $2750 is invested at 8% for 2 years compounded annually?

• $3000.00

• $3207.60

• $3500.00

• $2800.00

What does 'interest rate' refer to in finance?

• The total amount of money borrowed or invested.

• The percentage of the principal charged as interest for a loan or paid on an investment.

• The duration of time for which money is borrowed or invested.

• The fees associated with processing a loan application.