Understanding Compound Interest
Interactive Video
•
Mathematics
•
9th - 10th Grade
•
Practice Problem
•
Hard
Jennifer Brown
FREE Resource
10 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the principal amount in the investment problem discussed?
$12,000
$10,000
$7,000
$5,000
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which formula is used to calculate annual compound interest?
A = P(1 + r/n)^(nt)
A = P(1 + r)^t
A = P(1 - r)^t
A = P(1 + rt)
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
In the formula A = P(1 + r)^t, what does 'P' represent?
The total amount after time t
The principal amount
The interest rate
The time in years
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How is the interest rate expressed in the formula for compound interest?
As a percentage
As a whole number
As a fraction
As a decimal
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the first step in solving the compound interest formula?
Subtract the principal from the total amount
Raise the base to the power of time
Add 1 to the rate
Multiply the principal by the rate
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the total amount after 10 years of investment?
$11,410
$13,000
$10,000
$12,500
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How much money was earned from the investment after 10 years?
$6,410
$4,410
$5,410
$3,410
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