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Ch. 5 Compound Interest Test

Total questions: 10

Worksheet time: 3600secs

Name
Class
Date
1.

Alicia Martin’s savings account has a principal of $1,200. It earns 6% interest. How much simple interest will she earn after 9 months?

a)

$36.00

b)

$1,236.27

c)

$1,254.81

d)

$54.00

2.

Alicia Martin’s savings account has a principal of $1,200. It earns 6% interest compounded quarterly. How much compound interest will she earn after 9 months?

a)

$54.81

b)

$54.80

c)

$1254.81

d)

$1254.80

3.

Lena Green’s bank computes 4 percent simple interest on a daily basis. She has $1,000 in the account. Ten days later, she makes a deposit of $600. 15 days later, she withdraws $400 and the balance earns interest for 6 days. What is the amount in the account at the end of the month?

a)

$1,204.52

b)

$1,204.53

c)

$1,204.51

d)

None of the above

4.

The Walsh’s opened a savings account with a deposit of $2,000 on January 1. The account pays interest at 4.75% compounded semi-annually. On July 1 they deposited another $2,000. What amount will they have in their account on July 1?

a)

$2,047.50

b)

$4,047.49

c)

$4,047.50

d)

$2,047.29

5.

The Walsh’s opened a savings account with a deposit of $2,000 on January 1. The account pays interest at 4.75% compounded semi-annually. On July 1 they deposited another $2,000. What amount will the Walsh's have in the account on the next January first?

a)

$143.62

b)

$4,143.63

c)

$4,143.62

d)

$143.63

6.

The Walsh’s opened a savings account with a deposit of $2,000 on January 1. The account pays interest at 4.75% compounded monthly. On March 1 they deposited another $2,000. How much compound interest have the Walsh's earned by April 1?

a)

$4031.77

b)

$4031.76

c)

$31.77

d)

$31.76

7.

On March 31, John Freeland deposits $4500 into his savings account. The account pays 5.5% and is compounded daily. How much is in his account on August 18 and how much compound interest did he earn?

a)

4588.96; 88.96

b)

4588.97; 88.97

c)

4595.89; 95.89

d)

4595.90; 95.90

8.
Battle Ground bank pays 5 percent interest compounded quarterly on regular savings account.  Martha Luna deposited $3,000 for 2 years.  She made no other deposits or withdrawals.  Using the Compound Interest Table, figure out how much interest Martha earned during the 2 years?
a)
$1.10449
b)
$3,313.47
c)
$3,313.46
d)
$313.47
9.

Battle Ground bank pays 15 percent interest compounded monthly on regular savings account. Martha Luna deposited $4,000 for 2 years. She made no other deposits or withdrawals. Using the Compound Interest Table, figure out how much interest Martha earned during the 2 years?

a)

$5,389.40

b)

$1389.40

c)

$3,313.46

d)

$1.34735

10.

Josh Ragsdale opens a savings account with $10,000. The account pays 12% interest and is compounded monthly. At the end of each month he deposits another $1000. How much will he have in his account after 6 months?

a)

$16,767.22

b)

$16,767.21

c)

$10,510.10

d)

$10,615.20