Compound Interest

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?

• $6,273.50

• $6,314.08

• $6,385.72        

• $6,427.94          

You borrowed $1,690 for 5 1/2 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

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

• The amount of interest

• The total amount

• The interest rate

• The time

Jimmy invested $200 in a retirement account that had a rate of 20% that compounds annually.  If Jimmy leaves his money puts the money in when he is 24 and takes it out when he is 64, how much money will be in his account rounded to the nearest dollar?

• $29395
• $293954.31
• $293954

Julia invested $1000 for college in an account earning 5% compounded annually. When she checked the account after 48 MONTHS, how much money did she find in the account?

• Not enough

• $563.24

• $1215.51

• $3200.12

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.

What will be his balance after 15 year?

• $827.52

• $831.10

• $839.45

• $846.80

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?

• $565.70

• $262609.38

• $65.70

• $630.20

Kennedy 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 will she earn in 10 years?

• $915.59        

• $933.28      

• $979.81    

• $1,005.09      

Gary deposited $500 in an accoutn that earns 3% interest compounded annually. How much interest will the account earn after 6 years? 

• $90.00
• $100.00
• $97.03
• $109.20

King's Bank offers a 11% interest rate, while Royal Bank offers 14.8%. Both banks compound interest annually. If Mark wants to set up a new account with $17,689 how much more money will he earn at Royal Bank over King's Bank after 15 years?

• $11834.15         

• $12,097.9      

• $55,592.39

• $32,410