Interest

How much interest would we have in 5 years? You are investing $1650 at 3%. Formula: i = prt

• $349.50

• $495.00

• $49.50

• $247.50

If I am compounding quarterly, I need to divide the interest rate by _____.

• 2

• 3

• 4

• 5

If I am compounding daily, I need to divide the interest rate by ____. There are two correct answers. YOU MUST CHOOSE BOTH!!!

• 12

• 100

• 365

• 365.25

What does B stand for?

• interest rate

• Principal

• Balance

• number of compounding periods

What does p stand for?

• interest rate

• Principal

• time

• number of compounding periods

What does r stand for?

• interest rate

• Principal

• time

• number of compounding periods

What does n stand for?

• interest rate

• Principal

• time

• number of compounding periods

What does t stand for?

• interest rate

• Principal

• time

• number of compounding periods

When using this formula, what do I do first?

• Substitution

• Exponent (Power)

• Parentheses (in this case: add)

• Simplify r/n and nt

When using this formula, what do I do second (after substituting)?

• Substitution

• Exponent (Power)

• Parentheses (in this case: Add)

• Simplify r/n and nt