Compound Interest

Which formula(s) should you use for compound interest?

select ALL that apply.

• 
  

  $I=\left(P\right)\left(r\right)\left(t\right)$
  

• $A=P\left(1+r\right)^t$

• $P+I=A$

• $A=P\left(1+r\right)t$

Ms. Pierson is working out a compound interest problem. This is what she plugged into her calculator:

 $500\left(1+\frac{3}{100}\right)7$  

Did she do that correctly?

• Yes, everything looks good!

• No, she made a mistake :(

Your 3 year investment of $20,000 received 5.2% interest compounded annually. What will your total balance be at the end?

• $23,285.05

• $3,285.05

• $2,385

• $32,285

The Arnold's took out a loan for $195,000 to purchase a home. At a 4.3% interest rate compounded annually, how much interest will they have paid over the course of 30 years?

• $494,546.99

• $529.305.61

• $689,546.99

• $640,891.53

You borrowed $59,000 for 2 years at 11% which was compounded annually.  What total will you pay back?

• $13,693.90
• $1,363.90
• $72,693.90
• $73,793.90

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.SSE.A.1

CCSS.HSA.SSE.B.4

CCSS.HSF.BF.A.1

CCSS.HSF.LE.A.1

CCSS.HSF.LE.A.2

You borrowed $1,690 for 5.5 years at an interest of 5.7% compounded annually. How much extra did you pay by taking out the loan?

• $602.45

• $2,292.45

• $1,87.55

• $3,982.45

Your $440 gets 5.8% interest compounded annually for 8 years. What will your total balance be in 8 years?

Don't forget to round your answer to 2 decimal places.

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.

How much interest will he end up earning over the course of 15 years?

Don't forget to round your answer to 2 decimal places.