Understanding Savings Annuity

Understanding Savings Annuity

Assessment

Interactive Video

Mathematics, Business

9th - 12th Grade

Hard

Created by

Emma Peterson

FREE Resource

The video tutorial explains how to calculate the future balance of an account with quarterly deposits and interest compounded quarterly. It introduces the problem, describes the savings annuity formula, and applies it to find the account balance after 10 years. The calculation is demonstrated using Desmos, resulting in a final balance of $26,428.03.

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8 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the frequency of the deposits made into the account?

Annually

Bi-annually

Quarterly

Monthly

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the annual interest rate applied to the account?

5.5%

5.0%

4.5%

6.0%

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In the savings annuity formula, what does 'p' represent?

Interest rate

Principal amount

Periodic payments

Number of years

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How many times is the interest compounded per year?

4

3

2

12

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the value of 'n' in the formula for this problem?

2

4

3

12

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the exponent in the formula when calculating the future value of the account?

20

40

10

30

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which tool is used to perform the final calculation?

Python

Calculator

Desmos

Excel

8.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the final account balance after 10 years?

$25,000

$27,000

$28,500

$26,428.03