WorksheetsMath8 Compound Interest
Total questions: 12
Worksheet time: 47mins
The compound interest formula is:
A = P(1 + r)t
What does the A represent?
The amount of interest earned.
The amount of time that has passed.
The total amount of money after a certain amount of time.
The amount required to invest.
If $1,000 is invested at 16% interest, compounded annually, for five years, what is the ending balance?
$1,225,54
$2,100.34
$22,255.40
$225.54
Find the total amount of interest added the account to the nearest cent if the interest is compounded annually.
$2750 at 8% for 2 years
$207.60
$457.60
$440.00
Your 3 year investment of $20,000 received 5.2% interest compounded annually. What is your final balance?
$23,285.05
$3,285.05
$2,385
$32,285
Your $440 gets 5.8% interest compounded annually for 8 years. What will your $440 be worth in 8 years?
$250.78
$690.78
$1,130
$940.78
You invested $1,900 at 4% interest compounded annually for 3 years. How much interest did you earn in 3 years?
$2,372.40
$237.24
$2,137.24
$3,197.60
1. Suppose you deposit $250 in a new savings account paying an annual yield of 3% compound interest. If the account is left alone, how much money will be in the account at the end of 5 years?
$289.82
$250.00
$275.00
$287.50
How do you find the interest earned in a compound interest situation?
The formula gives you the interest.
(A = Interest)
You add the principal to the value from the formula.
(A + P)
You subtract the principal off of the value from the formula.
(A - P)
You multiply the principal with the value from the formula.
(A*P)
You graduate from college and manage to save $15,000 after your first year of work. You are now 23 years old. You decide to put that into a savings account that has an annual compound interest of 6.5%. How much money will you have in your account when you are 33 years old?
$119,847
$975.00
$24,750.00
$28,157.10
Which type of interest would be preferred for a car loan due to lower added interest amounts?
Simple Interest
Compound Interest
Both types are the same.
