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WorksheetsCompounding Interest Practice
Total questions: 20
Worksheet time: 10mins
Name
Class
Date
1.
Karla invested $1,000 in savings bonds. If the bonds earn 6.75% interest compounded semi-annually, how much total will Karla earn in 15 years?
a)
$1,584.62
b)
$2,651.39
c)
$2,706.86
d)
$1,825.10
2.
Emily 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 8 years.
a)
$15,415.94
b)
$15,683.28
c)
$15,927.56
d)
$16,109.05
3.
Monthly means how many times a year?
a)
4
b)
12
c)
52
d)
365
4.
Which equation do you use when asked to compound daily?
a)
A=Pert
b)
A=(1+(r/n))nt
5.
Principal: $999
Interest Rate: 5.45%
Time: 19 years
Compounded Quarterly
State the future account balance.
Interest Rate: 5.45%
Time: 19 years
Compounded Quarterly
State the future account balance.
a)
$2794.10
b)
$2738.11
c)
$2774.98
d)
$2807.11
6.
If $1,000 is invested at 16% interest, compounded continuously, for five years, what is the ending balance?
a)
$1,225,54
b)
$2,225.54
c)
$22,255.40
d)
$225.54
7.
Principal: $5000
Interest Rate: 3.75%
Time: 25 years
Compounded Monthly
State the future account balance.
Interest Rate: 3.75%
Time: 25 years
Compounded Monthly
State the future account balance.
a)
$12712.31
b)
$12,749.30
c)
$12,657.59
d)
$12550.84
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. What will be his balance after 15 year?
a)
$827.52
b)
$831.10
c)
$839.45
d)
$846.80
9.
P = 26,000 | Rate = 2.4% | 4 years | Compounded Continuously | Amount owed???
a)
$2,496
b)
$28,496
c)
$3,406,924
d)
$28,619.74
10.
e is...
a)
a variable.
b)
a number.
c)
an equation.
d)
nothing to worry about.
11.
What is the value of n if the question asks you to compound daily?
a)
12
b)
1
c)
365
d)
4
12.
The Arnold's took out a loan for $195,000 to purchase a home. At a 4.3% interest rate compounded annually, how much total will they have paid after 30 years?
a)
$412,749.79
b)
$529.305.61
c)
$689,546.99
d)
$640,891.53
13.
You invest $1,200 that is compounded continuously at 9% for 10 years. What is the equation you use?
a)
A = 1200(1.09)10
b)
A = 1200e..9
c)
A = 1200e10
d)
A = 1200 (.91)10
14.
Change 6.75% to a decimal.
a)
67.5
b)
.675
c)
675
d)
.0675
15.
Semi-Annually means how many times a year?
a)
4
b)
2
c)
1
d)
6
16.
Courtney saved up $2,200 working as a waitress over the summer. She put this money into a bank account that earned 5.2% interest and is compounded daily. How much will she have in her account at the end of 4 years?
a)
$2201.25
b)
$2694.55
c)
$2707.45
d)
$2708.63
17.
Which equation do you use when asked to determine the amount after being compounded continuously?
a)
A=Pert
b)
A=(1+(r/n))nt
18.
Shawn is buying a new Jet Ski for $12,500. He is considering two credit options. Option A offers a 6 year loan with 8.5% interest compounded quarterly, while Option B offers a 5 year loan with 10% interest compounded annually. Which is the better option and how much will he save?
a)
B; $573.83 do something crazy
b)
B; $495.21 get on the news
c)
A; $573.83 get attention
d)
A; $495.21 raise money for charity
19.
Compounded Continuously an investment of $400 at a rate of 35% for 2 years
a)
$280
b)
$680
c)
$1,034.47
d)
$805.50
20.
The rate for compounded interest needs to be in...
a)
a decimal.
b)
percent form.
c)
a variable form.
d)
what is rate?
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