Compounded Interest and Investment Concepts

The video tutorial explains how to calculate the value of an investment and the total interest earned over five years using different interest methods. It covers simple interest and compounded interest, including annual, quarterly, and monthly compounding. The tutorial provides formulas and step-by-step calculations for each method, demonstrating how the frequency of compounding affects the total interest earned.

What is the initial investment amount mentioned in the problem?

• $1,700

• $10,200

• $8,500

• $8,000

How is the interest rate expressed in the simple interest formula?

• As a percentage

• As a fraction

• As a decimal

• As a whole number

What is the total interest earned after 5 years with simple interest?

• $1,841.55

• $1,700

• $1,878

• $1,871.62

What is the formula used to calculate compounded interest?

• A = P(1 + n/r)^t

• A = P(1 + r)^t

• A = P(1 + r/n)^(nt)

• A = P(1 + rt)

How many times is the interest compounded annually?

• Twelve times

• Once

• Four times

• Twice

What is the account balance after 5 years with interest compounded annually?

• $10,371.62

• $10,341.50

• $10,378.47

• $10,200

How many times is the interest compounded quarterly?

• Four times

• Once

• Twelve times

• Twenty times

What is the total interest earned after 5 years with interest compounded quarterly?

• $1,871.62

• $1,878

• $1,841.55

• $1,700

How many times is the interest compounded monthly?

• Once

• Four times

• Twelve times

• Sixty times

What is the account balance after 5 years with interest compounded monthly?

• $10,200

• $10,341.50

• $10,371.62

• $10,378.47