Calculating Compound Interest in 7th Grade Math

What does compound interest earn interest on?

• None of the above

• On both the principal and any previously earned interest

• Only on the previously earned interest

• Only on the principal amount

How does compound interest growth compare to simple interest?

• Does not grow

• Grows more slowly than simple interest

• Grows at the same rate as simple interest

• Grows more rapidly than simple interest

What is the formula for calculating compound interest?

• A = P(1 + r)^t

• A = P(1 + rt)

• A = P + prt

• A = P(1 - r)^t

How do you find the interest earned with the compound interest formula?

• Subtract the principal from the total value

• Add the principal to the total value

• Multiply the principal by the rate

• Divide the total value by the principal

What was the total value for a $2000 loan at 4% annual interest after 2 years?

• $216.32

• $2000.00

• $2163.20

• $163.20

How much interest did a $1000 deposit earn at 5% annual interest after 1 year?

• $50.00

• $5.00

• $1050.00

• $1000.00

What was the total amount Tory paid for the microphone after 2 years?

• $530.45

• $500.00

• $30.45

• $503.45

How much interest will Adam have earned on his retirement savings after 25 years?

• $6406.06

• $16406.06

• $406.06

• $10000.00

What is the total interest Jason pays on his treadmill loan after 3 years?

• $31.82

• $2731.82

• $2500.00

• $231.82

What will be the total value of Sophia's account after 8 years?

• $7126.18

• $19126.18

• $126.18

• $12000.00