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Compound Interest

Total questions: 8

Worksheet time: 27mins

Name
Class
Date
1.

Which formula(s) should you use for compound interest?


select ALL that apply.

a)


I=(P)(r)(t)I=\left(P\right)\left(r\right)\left(t\right)

b)

A=P(1+r)tA=P\left(1+r\right)^t

c)

P+I=AP+I=A

d)

A=P(1+r)tA=P\left(1+r\right)t

2.

Ms. Pierson is working out a compound interest problem. This is what she plugged into her calculator:


 500(1+3100)7500\left(1+\frac{3}{100}\right)7  

Did she do that correctly?

a)

Yes, everything looks good!

b)

No, she made a mistake :(

3.

Your 3 year investment of $20,000 received 5.2% interest compounded annually. What will your total balance be at the end?

a)

$23,285.05

b)

$3,285.05

c)

$2,385

d)

$32,285

4.

The Arnold's took out a loan for $195,000 to purchase a home. At a 4.3% interest rate compounded annually, how much interest will they have paid over the course of 30 years?

a)

$494,546.99

b)

$529.305.61

c)

$689,546.99

d)

$640,891.53

5.
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
6.

You borrowed $1,690 for 5.5 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

7.

Your $440 gets 5.8% interest compounded annually for 8 years. What will your total balance be in 8 years?


Don't forget to round your answer to 2 decimal places.

(a)  

8.

Jay'den earned $475 from mowing lawns last summer. He deposited this money in an account that pays an interest rate of 3.8% compounded annually.

How much interest will he end up earning over the course of 15 years?


Don't forget to round your answer to 2 decimal places.

(a)