Compound Interest

In the compound interest formula A=P(1+r)^t what does the P stand for?

• The time

• The total amount

• The principal amount (original amount)

• The interest rate

In the formula for compound interest, what does the n stand for?

 $A=P\left(1+\frac{r}{n}\right)^{\left(n\right)\left(t\right)}$  

• Number of compounding periods per year

• Number of years

• Number of deposits

• Number of dollars

Tags

CCSS.HSF.LE.B.5

A man invests $2,000 in an account that pays 8% interest compounded 4 times a year. What is the total amount he will have in his account after 10 years?

• $4,416.08

• $2,939,543.14

• $43,449.04

• $4,317.85

Jane deposits $450 into a savings account that generates 10% interest compounded 12 times a year. How much money will be in the account after 12 years?

• $1,486.64

• $1,412.29

• $507.35

Karla invested $1,000 in savings bonds. If the bonds earn 6.75% interest compounded 2 times a year, how much total will Karla earn in 15 years?

• $1,584.62
• $2,651.39
• $2,706.86
• $1,825.10

Tags

CCSS.HSF-LE.A.1C

What will be the final amount if $500 is deposited in a bank at 3% interest (compounding 12 times a year) for 5 years?

Hint: Use the formula: A = P (1 + r/n)^n.t

• $540

• $580

• $620

• $660

What will be the final amount if $2500 is deposited in a bank at 7% interest (compounding 2 times a year) for 5 years?

Hint: Use the formula: A = P (1 + r/n)^n.t

• $2750

• $3000

• $3250

• $3526

What will be the final amount if $4000 is deposited in a bank at 1% interest (compounding 12 times a year) for 3 years?

Hint: Use the formula: A = P (1 + r/n)^n.t

• $4121

• $4240

• $4360

• $4480

What will be the final amount if $3500 is deposited in a bank at 3% interest (compounding 4 times a year) for 2 years?

Hint: Use the formula: A = P (1 + r/n)^n.t

• $3642

• $3715

• $3780

• $3850

Change 6.75% to a decimal.

• 67.5
• .675
• 675
• .0675