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Week 26 - Compound Interest

Total questions: 21

Worksheet time: 28mins

Name
Class
Date
1.

Ricky 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 3 years?

a)

$531.23

b)

$639.45

c)

$511.79

d)

$831.10

2.

Emily’s parents put $1,500 in her bank account for college tuition. At an interest rate of 8.25% compounded annually, what will be the balance after 4 years?

a)

$1,273.50

b)

$2,385.72

c)

$2,059.70

d)

$1,757.71

3.

Reuben took a loan out for $25,690 to purchase a truck. At an interest rate of 5.2% compounded monthly, how much total will he have paid after 3 years?

a)

$33,299.42

b)

$33,672.68

c)

$28,431.23

d)

$29,909.65

4.

Minette would like to buy some new furniture for her home. She decides to buy the furniture on credit with 9.5% interest compounded quarterly. If she spent $7,400, how much total will she have paid after 3 years?

a)

$9,715.70

b)

$10,683.28

c)

$8,872.79

d)

$11,927.01

5.

The Henley'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 after 15 years?

a)

$412,749.79

b)

$271,259.24

c)

$329,305.61

d)

$366,690.15

6.

Sonny won $3,000 from a radio contest. If he puts this money in a bank account that earns 2.9% interest compounded annually, how much interest will he earn in 5 years?

a)

$3,460.97

b)

$3,979.81

c)

$1,005.09

d)

$4,933.28

7.

David invested $1,000 in savings bonds. If the bonds earn 6.75% interest compounded annually, how much will David have in 8 years?

a)

$1,584.62

b)

$1,651.39

c)

$1,893.45

d)

$1,686.33

8.

Town Bank offers a 2.25% interest rate, while Charter One offers 2.8%. Both banks compound interest annually. If Gabriel wants to set up a new account with $5,000, how much more money will he earn at Charter One over Town Bank after 3 years?

a)

$58,000

b)

$55.56

c)

$86.72

d)

$59,000

9.

Eight years ago, Maria put $1,800 in an account that pays an interest rate of 2.5% compounded annually. She now plans to take the  money in that account and invest it in another account that earns 4% interest compounded monthly. How much money will be in this new account after 6 years?

a)

$1,845.67

b)

$2,193.13

c)

$2,775.01

d)

$5,970.53

10.

Jesus is buying a new Jet Ski for $12,500. He is considering two credit options. Option A offers  a 4 year loan with 8.5% interest compounded annually, while Option B offers a 3 year loan with 10% interest compounded annually. Which is the better option and how much will he save?

a)

$454.65

b)

$685.73

c)

$16637.50

d)

$1500.52

11.

 

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

a)

The amount of interest

b)

The interest rate

c)

The total amount

d)

The time

12.

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

a)

The time

b)

The principal amount (original amount)

c)

The total amount

d)

The interest rate

13.

Nick borrows $500 from Willie and agrees to have the loan compounded annually for 2 years with an interest rate of 2.5%. How much will the total amount be that Nick owes?

a)

$525.31

b)

$425

c)

$625.50

d)

$535

14.

Jimmy has $1500 in a retirement account earning 5% interest compounded annually. After 5 years how much does Jimmy have in the account?

a)

$1750

b)

$2500

c)

$2010.14

d)

$1914.42

15.

Angel deposits $750 into a college savings account that is compounded annually when his parents received as a stimulus package. If Angel 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)

$2345.67

c)

$1535.24

d)

$850.76

16.

Alice invested $1000 for college in an account earning 5% compounded annually. When she checked the account after 4 years, how much money did she find in the account?

a)

Too much

b)

$1215.51

c)

$563.24

d)

$3200.12

17.

Carlos wants to have $4000 saved up in 3 years for a car. If he invests $1500 in a savings account that is compounded annually at an interest rate of 12%, will he have enough money at the end of the 4 years?

a)

Yes

b)

No

18.

Jeremy invests $360 in a bank account that is compounded annually for 8 years with an interest rate of 5.5%. What will be the total amount in the account after the 8 years is over?

a)

$625.88

b)

$315.45

c)

$950.12

d)

$552.49

19.

Brianna has $3000 invested at a 2% interest rate. Which expression can be used to determine how much money Brianna had after 16 years?

a)

A=3000(1+.02)^16

b)

A=16(1+.2)^3000

c)

A=3000(1−.02)^16

d)

A=3000(.2)^16

20.

How are Ms Padilla and Mr Dawson doing in your class?

a)

Good

b)

Terrible

c)

Can do a little better

d)

Great!

21.

What is the O in S.O.A.R?

a)

Outside

b)

Opportunity

c)

O' so good!

d)

Outstanding