Exploring Compound Interest Problem Solving

What does the 'P' in the compound interest formula represent?

• Future value

• Principal amount

• Annual interest rate

• Periods per year

What is the formula for calculating compound interest?

• A = P + prt

• A = P(1 + r/n)^nt

• A = P(1 + rt)

• A = P(1 - r/n)^nt

What does the 'n' represent in the compound interest formula?

• Future value

• Number of compounding periods per year

• Total number of years

• Principal amount

How often was the interest compounded in Maria's account?

• Semi-annually

• Monthly

• Quarterly

• Annually

What was the future value of Maria's investment after 10 years?

• 44,392.80 pesos

• 24,392.80 pesos

• 50,000 pesos

• 20,000 pesos

What was the total interest earned in Maria's example after 10 years?

• 44,392.80 pesos

• 20,000 pesos

• 50,000 pesos

• 24,392.80 pesos

How much did James need to invest initially to reach his retirement goal?

• 100,000 pesos

• 45,000 pesos

• 2,000,000 pesos

• 29,249.926 pesos

What was the annual interest rate required for Sarah's investment goal?

• 9.5%

• 8%

• 10%

• 12.20184%

How long did it take for Marta's investment to reach 1 million pesos?

• 20 years

• 36.41 years

• 45 years

• 30 years

What type of compounding was used in Marta's investment?

• Semi-annually

• Annually

• Quarterly

• Monthly