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Compound Interest

Total questions: 15

Worksheet time: 2hrs 48mins

Name
Class
Date
1.

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

a)

The amount of interest

b)

The total amount

c)

The interest rate

d)

The time

2.

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

a)

The time

b)

The total amount

c)

The principal amount (original amount)

d)

The interest rate

3.

Jacob borrows $500 from Abraham and agrees to have the loan compounded annually for 5 years with an interest rate of 2.5%. How much will the total amount be that Jacob owes?

a)

$565.70

b)

$262609.38

c)

$65.70

d)

$630.20

4.

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

a)

$1750

b)

$2010.14

c)

$2500

d)

$1914.42

5.

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

$1535.24

c)

$2345.67

d)

$850.76

6.

Daniel 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)

$950.12

c)

$315.45

d)

$552.49

7.

Emily’s parents put $1,500 in her bank account for college tuition. At an interest rate of 8.25% compounded semiannually,what will be the balance after 18 years?

a)

$6,273.50

b)

$6,314.08

c)

$6,385.72

d)

$6,427.94

8.
Semi-Annually means how many times a year?
a)
b)
2
c)
1
d)
6
9.

What does the r stand for in this formula?

a)

Initial amount

b)

Final amount

c)

Interest Rate

d)

Time

e)

The number of times compounded per year

10.

If your money is compounded quarterly, what value do you use for n?

a)

6

b)

.25

c)

25

d)

4

11.

55% is written as___ as a decimal.

a)

55

b)

0.055

c)

5.5

d)

0.55

12.
Riley invested $1,000 in savings bonds. If the bonds earn 6.75% interest compounded semi-annually, how much total will Riley earn in 15 years?
a)
$1,584.62
b)
$2,651.39
c)
$2,706.86
d)
$1,825.10
13.
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
b)
$15,683.28
c)
$15,927.56
d)
$16,109.05
14.
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
15.
If you invest $300 at 6% compounded monthly, how much money do you have after 4 years?
a)
$381.14
b)
$381.15
c)
$1274.01
d)
$381.37