May 1: Compound Interest #2

Semi-Annually means how many times a year?

• 4 
• 2
• 1
• 6

Monthly means how many times a year?

• 4 
• 12
• 52
• 365

Bruno was given $2000 when he turned 3 years old. His parents invested it at a 2% interest rate compounded annually. Which expression can be used to determine how much money Bruno had in the account when he turned 16?

• 2000(1+0.02)¹³

• 2000(1+0.02)^-13

• 2000(1+0.02)¹⁶

• 2000(1+0.02)³

Emily's parents put $1,500 in her bank account for college tuition. At an interest rate of 8.25% compounded semi-annually, what will be the balance after 3 years?

• $2,273.50

• $1,514.08

• $2,040.23

• $1,911.70

Principal: $999
Interest Rate: 5.45%
Time: 19 years
Compounded Quarterly
State the future account balance.

• $2794.10
• $2738.11
• $2774.98
• $2807.11

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

Courtney saved up $2,200 working as a waitress over the summer. She put this money into a bank account that earned 5.2% interest and is compounded daily. How much will she have in her account at the end of 4 years?

• $2201.25
• $2694.55
• $2707.45
• $2708.63

Riley will have $2,706.86 in a savings bonds. If the bonds earn 6.75% interest compounded semi-annually, how much will Riley have to invest to earn this amount in 15 years?

• $1,584.62

• $2,651.39

• $1,000.00

• $1,825.10

Heather invested in a 4-year Certificate of Deposit (CD) that pays 4.1% interest compounded annually. How much will she have to invest into the CD, at the end of the 4 years, if $9,394.92 will be earned?

• $8,000.00

• $9,312.00

• $1394.00

• $1312.00

Steve wants to have $5,000, after 3 years, in a savings account that pays 4% interest compounded annually. Which equation could be used to find the value he needs to have in the account?

• P = 5,000(1 + 4)^-3

• P = 5,000(1 + 0.04)^-3

• P = 5,000(1 + 0.4) x -3

• A = 5,000(1 + 0.04)³