Compound Interest Balance

A college receives a donation of $955,000 that earns 5.33% interest compounded daily. How much interest would the college earn in one year?

• $52,278.53

• $50,901.50

• $1,005,901.50

• $1,007,278.53

Your $54,200 2 year car loan is at 15.1% compounded annually. What will you have paid for your car after 2 years?

• $62,693.15

• $62,384.20

• $71,804.21

• $341,465.42

An investment of $9,875 earns 4.8% interest compounded monthly over 12 years. Approximately how much INTEREST is earned on the investment?

• $7,457.95

• $10,359.57

• $17,546.55

• $484.57

Emma deposits $1200 into an account that pays 3% interest, compounded monthly. What is her ending balance after one year?

• $1,613.87

• $1,709.91

• $1,236.50

• $1,203.00

Find the INTEREST for a six-year CD for $5000 at an interest rate of 4%, compounded annually.

• $1,326.60

• $6,326.60

• $5,100.84

• $100.84

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

• A = 5,000(1 + 4)³

• A = 5,000(1 + 0.04)³

• A = 5,000(1 + 0.4) x 3

• A = 5,000(0.04)³

The Arnold's took out a loan for a home. The amount was $195,000 at a 4% interest rate compounded annually, how much will they have paid after 30 years?

• $412,489.75

• $529,586.31

• $632,462.51

• $640,891.12

Given an investment of $1,500:
Which investment would have a larger balance after 5 years?
4% compounded monthly
3.9% compounded daily.

• 4% compounded monthly

• 3.9% compounded daily

What does the n stand for in this formula?

• Initial amount

• Final amount

• Rate

• Time

• The number of times compounded per year

What does the P stand for in this formula?

• Initial amount

• Final amount

• Rate

• Time

• The number of times compounded per year