Compound Interest

If you invest $2,000 at an annual interest rate of 5% compounded annually for 3 years, the future value will be _____

The principal amount is _____ if the future value is $3,000 after 4 years at an annual interest rate of 6% compounded annually.

If $1,500 is invested at 8% interest compounded quarterly, what will be the value after 2 years?

It will take _ years with a principal of $1000 to reach $1,610.51 at an annual interest rate of 10% compounded annually.

If the future value is $2,000, present value is $1584, and the interest is compounded annually for 4 years, what is the annual interest rate?

• 5.56%

• 6.00%

• 7.00%

• 8.00%

Which formula is used to calculate the future value with compound interest (not continuous)?

If interest is compounded monthly, how many compounding periods are there in 3 years?

• 12

• 24

• 36

• 48

A sum of $5,000 is invested at 4% interest compounded daily (assume 365 days in a year) for 2 years. The future value is _____

If the annual interest rate is 9% compounded quarterly, what is the interest rate per period?

• 2.25%

• 2.00%

• 2.50%

• 3.00%

How long will it take for $2,000 to double at an annual interest rate of 7% compounded annually?

• 10 years

• 11 years

• 12 years

• 14 years