Chapter 11 Test

Use the compound interest equation to determine how much money an account would have after 10 years if an initial deposit of $3,000 was made and the annual interest rate was 5% and compounded biannually?

• $5125.20

• $4915.85

• $3500.35

• $4512.25

Use the compound interest equation to determine how much money an account would have after 20 years if an initial deposit of $10,000 was made and the annual interest rate was 6.5% and compounded monthly?

• $45,394.43

• $35,010.42

• $36,564.47

• $16,500.65

Use the continuously compounded interest equation to determine how much money an account would have after 5 years if an initial deposit of $2,500 was made and the annual interest rate was 4% and compounded continuously?

• $3,053.51

• $2,903.21

• $3,419.67

• $3212.52

Use the continuously compounded interest equation to determine how much money an account would have after 20 years if an initial deposit of $7,500 was made and the annual interest rate was 7.1% and compounded continuously?

• $12,482.18

• $49,261.08

• $27,519.07

• $31,028.40