TMR Simple and Compound Interest
Janine opens a savings account with a deposit of $720. The account pays 3.4% interest, compounded daily. What is the first day's interest, rounded to the nearest cent?
$0.07
Kevin has x dollars in an account that pays 3.2% interest, compounded quarterly. Express his balance after one quarter.
x + .008x
Kevin has x dollars in an account that pays 2.2% interest, compounded quarterly. Express his balance after one quarter.
x + 0.055x
Nancy deposits $1200 into an account that pays 3% interest, compounded monthly. What is her ending balance after one year?
$1236.50
Regina deposits $3500 in a savings account that pays 7.5% interest, compounded semiannually. How much interest does she earn in the first six months?
$131.25
Marie deposits $1650 for three years at 3% interest, compounded daily. What is her interest?
$155.38
Marie deposits $1650 for three years at 3% interest, compounded daily. What is her ending balance?
$1805.38
Jackie invests $800 in an account that pays 5% annual interest, compounded monthly. Michael invests $600 in an account that pays 8% annual interest, compounded weekly. What is the value of the greater balance at the end of the 15 years?
$1990.23
Jerome deposits $3700 in a cd that pays 6.5% interest, compounded annually. How much interest does Jerome earn in one year?
$240.50
Kate deposits $2350 in an account that earns interest at a rate of 3.1%, compounded monthly. What is her ending balance after five years?
$2743.45
Pierre deposits $9000 in a cd that pays 8% interest, compounded semiannually. How much interest does Pierre earn in the first six months?
$360
Regina deposits $3500 in a savings account that pays 7.5% interest, compounded semiannually. What is her balance at the end of the first six months?
$3631.25
Regina deposits $3500 in a savings account that pays 7.5% interest, compounded semiannually. What is her balance at the end of the year?
$3767.42
Jerome deposits $3700 in a cd that pays 6.5% interest, compounded annually. What is Jerome's ending balance after one year?
$3940.50
Regina deposits $3500 in a savings account. How much more interest would Regina earn at 7.5% compounded semiannually than compounded annually, in one year?
$4.92
Sally deposits $4000 in a cd that pays 6.75% simple interest. What is her balance after one year?
$4270
Laura deposits $2000 in an account that has an annual interest rate of 3.96%, compounded monthly. How much interest will she earn at the end of 1 month?
$6.60
Jose opens a savings account with $800 at 3.87% interest, compounded quarterly. What is his ending balance after one year?
$831.41
Compound Interest Formula
A=P(1+r/n)^nt
Formula to calculate the ending balance on simple interest
A=p+prt
Using the compound interest formula, how could you edit the formula to find the interest instead of the ending balance?
I=P - (P(1+r/n)^nt
Simple Interest Formula
I=prt
How long does it take $450 to double at a simple interest rate of 14%?
approximately 7 years
How long will it take $10,000 to double at 11% simple interest?
approximately 9 years
In the compound interest formula, what does the B or A (depending on how you write it) represent?
ending balance or amount with interest included
In the compound interest formula, what letter represents the initial amount you invest?
p for principal
In the compound interest formula, what does r represent?
the interest rate as a decimal
In the compound interest formula, what does n represent?
the number of times the interest is compounded per year
In the compound interest formula, what does t represent?
the time in years for the investment
In the simple interest formula, what does I represent?
the total interest
