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WorksheetsCompound Interest
Total questions: 13
Worksheet time: 1hrs 3mins
Name
Class
Date
1.
To earn as much interest as possible, you should open a savings account that earns ______ interest and has the _____ interest rate.
a)
compound; lowest
b)
simple ; lowest
c)
compound ; highest
d)
simple ; highest
2.
John just opened a savings account and wants to maximize the amount of interest he earns. Which of the following actions enable him to earn MORE interest?
a)
selecting an account with a higher interest rate
b)
leaving his money in the account for a long period of time
c)
transferring money into his checking account each month
d)
higher interest rate AND leaving money in for a longer time
3.
Write the percent as a decimal.
4.3%
4.3%
a)
4.3
b)
.43
c)
.043
d)
4300
4.
Caiden earned $475 from mowing lawns last summer. He deposited this money in an account that pays an interest rate of 3.8% compounded annually. What will be his balance after 15 year?
a)
$827.52
b)
$831.10
c)
$839.45
d)
$846.80
5.
The compound interest formula is:
A = P(1 + r)t
What does the A represent?
a)
The amount of interest earned.
b)
The amount of time that has passed.
c)
The total amount of money after a certain amount of time.
d)
The amount required to invest.
6.
If $1,000 is invested at 16% interest, compounded annually, for five years, what is the ending balance?
a)
$1,225,54
b)
$2,100.34
c)
$22,255.40
d)
$225.54
7.
the time has to be in _____________
a)
years
b)
months
c)
days
d)
seconds
8.
The A means ____________ in compound interest
a)
annual
b)
amount in account
c)
answer
d)
accrued debt
9.
interest is _________
a)
extra money paid for borrowing
b)
interesting
c)
Flocabulary songs
d)
time times rate
10.
Find the total amount in the account to the nearest cent if the interest is compounded annually.
$2750 at 8% for 2 years
$2750 at 8% for 2 years
a)
$220
b)
$440
c)
$660
11.
Your 3 year investment of $20,000 received 5.2% interest compounded annually. What is your total return?
a)
$23,285.05
b)
$3,285.05
c)
$2,385
d)
$32,285
12.
You borrowed $59,000 for 2 years at 11% which was compounded annually. What total will you pay back?
a)
$13,693.90
b)
$1,363.90
c)
$72,693.90
d)
$73,793.90
13.
You borrowed $1,690 for 5 1/2 years at an interest of 5.7% compounded annually. How much extra did you pay by taking out the loan?
a)
$602.45
b)
$2,292.45
c)
$1,87.55
d)
$3,982.45
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