Compound Interest Formulas

• The future value including the principal amount and the simple interest

• The simple interest you will receive

• The future value including the principal amount and the compound interest

• The compound interest you will receive

• The number of times compounded per year

Jim invests $10,000 at 6.3% compounded quarterly for 5 years.

Which formula would be used to calculate the future value of the investment?

Jim invests $10,000 at 6.3% compounded quarterly for 5 years.

What variable does $10,000 represent?

• A 

• P 

• n 

• t 

Caiden 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 years?

• $827.52                     (Mr. Williams)       

• $831.10                 (Mrs. Hoch)

• $839.45                    (Mr. Krajunus)

• $846.80                   (Ms. Palombo)

You borrowed $59,000 for 2 years at 11% which was compounded annually.  What total will you pay back?

• $13,693.90

• $1,363.90

• $72,693.90

• $73,793.90

Chelsea put $7500 into an account paying 5% compounded continuously. She now has $10,643.01. How long has the money been in the account?

• 7 years

• 6 years

• 5 years

• 4 years

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Olivia would like to buy some new furniture for her home. She decides to buy the furniture on credit with 9.5% interest compounded quarterly. If she spent $7,400, how much total will she have paid after 8 years?

• $15,415.94       LeBron James

• $15,683.28            Chase Utley

• $15,927.56       Serena Williams

• $16,349.72            Tom Brady

You invest $1600 at an annual interest rate of 4.6% compounded continuously. How much will you have in the account after 4 years.

• $800.26

• $6,701.28

• $10,138.07

• $1,923.23

How much money should I save in an account with interest rate 4% compounded quarterly if I want to have $4500 in my account  in 5 years?

• $3463.04

• $3366.58

• $3687.95

• $3903.18

Maya 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 (PROFIT) will she earn in 10 years?

• $3,178.48

• $4,005.09

• $979.81

• $1,005.09