Free Printable Compound Interest Formulas

1.

The formula is used to calculate...

a)

The future value including the principal amount and the simple interest

b)

The simple interest you will receive

c)

The future value including the principal amount and the compound interest

d)

The compound interest you will receive

e)

The number of times compounded per year

2.

Jim invests $10,000 at 6.3% compounded quarterly for 5 years.

Which formula would be used to calculate the future value of the investment?

a)

$I=\Pr t$

b)

$A=P\left(1+rt\right)$

c)

$A=P\left(1+\frac{r}{n}\right)^{nt}$

d)

$A=\frac{R\left[\left(1+\frac{r}{n}\right)^{nt}-1\right]}{\frac{r}{n}}$

3.

Jim invests $10,000 at 6.3% compounded quarterly for 5 years.

What variable does $10,000 represent?

a)

A

b)

P

c)

n

d)

t

4.

Caiden 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 years?

a)

$827.52 (Mr. Williams)

b)

$831.10 (Mrs. Hoch)

c)

$839.45 (Mr. Krajunus)

d)

$846.80 (Ms. Palombo)

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.

Chelsea put $7500 into an account paying 5% compounded continuously. She now has $10,643.01. How long has the money been in the account?

a)

7 years

b)

6 years

c)

5 years

d)

4 years

7.

Olivia 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 LeBron James

b)

$15,683.28 Chase Utley

c)

$15,927.56 Serena Williams

d)

$16,349.72 Tom Brady

8.

You invest $1600 at an annual interest rate of 4.6% compounded continuously. How much will you have in the account after 4 years.

a)

$800.26

b)

$6,701.28

c)

$10,138.07

d)

$1,923.23

9.

How much money should I save in an account with interest rate 4% compounded quarterly if I want to have $4500 in my account in 5 years?

a)

$3463.04

b)

$3366.58

c)

$3687.95

d)

$3903.18

10.

Maya won $3,000 from a radio contest. If she puts this money in a bank account that earns 2.9% interest compounded quarterly, how much INTEREST (PROFIT) will she earn in 10 years?

a)

$3,178.48

b)

$4,005.09

c)

$979.81

d)

$1,005.09

Compound Interest Formulas

Total questions: 10

Worksheet time: 10mins

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