Homework 8: simple and compound interest

Front

Carly deposited $800 in an account with 6% compounded annually. Lara deposited $800 in an account with 6% simple interest. How much will each have after 10 years?

Back

Carly: $1432.68 Lara: $1280

Front

Equation to find the value of a $5,000 savings account with 4% interest compounded annually after 3 years.

Back

A = 5,000(1 + 0.04)³

Front

If you are opening a savings account, is it better to have interest compounded daily or quarterly at 7%?

Back

Daily - so you earn money more often

Front

Which formula is shown here?

Back

Compounded n times per year

Front

What does the n stand for in this formula? Options: Initial amount, Final amount, Rate, Time, The number of times compounded per year

Back

The number of times compounded per year

Front

Exponential equation for $1,000 investment at 6.75% interest compounded semi-annually for 15 years?

Back

Front

Which formula is shown?

Back

Compounded continuously

Front

What does the P stand for in this formula?

Back

Initial amount

Front

What does the r stand for in this formula?

Back

Rate

Front

Chelsea put $7500 into an account paying 5% compounded continuously. How much will she have in 7 years?

Back

$10,643.01