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Compound Interest

Total questions: 10

Worksheet time: 23mins

Name
Class
Date
1.

Change 18% to a decimal

a)

18

b)

.18

c)

.018

d)

.18%

2.

In the compound interest formula A=P(1+r)t what does the A stand for?

a)

The amount of interest

b)

The total amount

c)

The interest rate

d)

The time

3.

In the compound interest formula A=P(1+r)t what does the P stand for?

a)

The time

b)

The total amount

c)

The principal amount (original amount)

d)

The interest rate

4.
Bruno was given $2000 when he turned 3 years old.  His parents invested it at a 2% interest rate compounded annually.  No deposits or withdrawls were made.  Which expression can be used to determine how much money Bruno had in the account when he turned 16? 
a)
2000(1+0.02)13
b)
2000(1-0.02)13
c)
2000(1+0.02)16
d)
2000(1-0.02)16
5.

Jacob borrows $500 from Abraham and agrees to have the loan compounded annually for 5 years with an interest rate of 2.5%. How much will the total amount be that Jacob owes?

a)

$565.70

b)

$262609.38

c)

$65.70

d)

$630.20

6.

Henry deposits $750 into a college savings account that is compounded annually when his parents received as a stimulus package. If Henry lets the money sit in the account without adding or removing any and receives a 8.5% interest rate, how much money will he have total after 5 years?

a)

$1127.74

b)

$1535.24

c)

$2345.67

d)

$850.76

7.

If you wanted to amount of interest an account has earned after being compounded annually. What would you have to do after you found "A" using the formula A=P(1+r)t ?

a)

Add A (total amount) plus P (original amount)

b)

Subtract A (total amount from P (original amount)

c)

Add P (original amount) plus A (total amount)

d)

Subtract P (original amount) from A (total amount)

8.

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? (What is the interest?)

a)

$602.45

b)

$2,292.45

c)

$1,87.55

d)

$3,982.45

9.
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
10.

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.


What will be his balance after 15 year?

a)

$827.52

b)

$831.10

c)

$839.45

d)

$846.80