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Mastering Compound Interest: Calculating Time & Growth

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

A bank offers a savings account with an annual interest rate of 5% compounded annually. If you deposit $1,000, how much will you have in the account after 3 years?

a)

1100.50

b)

1200.00

c)

1157.63

d)

1050.75

2.

You invest $2,500 in a certificate of deposit (CD) that earns 4% interest compounded quarterly. How much will you have after 5 years?

a)

2500.00

b)

3050.47

c)

2900.25

d)

3200.00

3.

If you want to have $10,000 in your savings account in 6 years and the bank offers an interest rate of 3% compounded annually, how much do you need to deposit now?

a)

7500.00

b)

9000.00

c)

10000.00

d)

8396.62

4.

A loan of $5,000 is taken out at an interest rate of 6% compounded semi-annually. How much will be owed after 4 years?

a)

5000.00

b)

6000.00

c)

7000.00

d)

6333.85

5.

You plan to save $1,200 each year in an account that earns 7% interest compounded annually. How much will you have saved after 10 years?

a)

$10,000.00

b)

$15,000.00

c)

$18,000.00

d)

$16,452.82

6.

If you invest $800 at an interest rate of 5% compounded monthly, how much will you have after 2 years?

a)

875.50

b)

883.59

c)

900.00

d)

850.00

7.

A student takes a loan of $3,000 at an interest rate of 8% compounded annually. How much will the student owe after 3 years?

a)

$3,779.14

b)

$2,400.00

c)

$3,500.00

d)

$4,000.00

8.

You want to accumulate $15,000 for a car in 5 years. If your investment earns 4% interest compounded annually, how much do you need to invest today?

a)

12310.80

b)

20000.00

c)

10000.00

d)

15000.00

9.

A retirement account has an initial balance of $10,000 and earns 6% interest compounded annually. What will the balance be after 20 years?

a)

32071.35

b)

15000.00

c)

25000.00

d)

40000.00

10.

If you invest $1,500 in a fund that offers 5% interest compounded quarterly, how much will you have after 4 years?

a)

1500.00

b)

1832.08

c)

2000.00

d)

1750.50