Compound Interest 1
Try VividMath Premium to unlock full access
Time limit: 0
Quiz summary
0 of 5 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
Information
–
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading...
You must sign in or sign up to start the quiz.
You have to finish following quiz, to start this quiz:
Loading...
- 1
- 2
- 3
- 4
- 5
- Answered
- Review
-
Question 1 of 5
1. Question
Timothy opened a savings account and deposited $$$3{,}000$$. The account earns `7%` interest compounded yearly. What is the total amount he will have in the bank after `4` years?Round your answer to two decimal places- `\text(total amount)=$` (3932.39)
Hint
Help VideoCorrect
Nice Job!
Incorrect
Compound Interest Formula
$$A=\color\green{P}\left(1+\frac{\color{blue}{r}}{\color{#a300c1}{n}}\right)^{\large\color{#a300c1}{n}\color{#e85e00}{t}}$$Label Known Values
Principal Value $$= P = $3{,}000$$Interest Rate `= r = 7% \text(per annum) = 0.07 \text((as a decimal))`Time Elapsed `= t = 4` yearsNumber of times compounded per year `= n = 1 \text((Annually))`Solve for the Amount `(A),` using the formula`A` `=` $$\color\green{P}\left(1+\frac{\color{blue}{r}}{\color{#a300c1}{n}}\right)^{\large\color{#a300c1}{n}\color{#e85e00}{t}}$$ Compound Interest Formula `=` $$\color\green{3{,}000}\left(1+\frac{\color{blue}{0.07}}{\color{#a300c1}{1}}\right)^{\large\color{#a300c1}{1}\times\color{#e85e00}{4}}$$ Substitute known values `=` $$(3{,}000)(1.07)^4$$ Simplify `=` $$(3{,}000)(1.31079601)$$ `=` $$3{,}932.39$$ Round to two decimal places $$$3{,}932.39$$ total amount -
Question 2 of 5
2. Question
If you deposit $$$9{,}300$$ into an account earning `4.5%` interest compounded annually, how much money will be in the account after `3` years?Round your answer to two decimal places- `\text(total amount)=$` (10612.84)
Hint
Help VideoCorrect
Excellent!
Incorrect
Compound Interest Formula
$$A=\color\green{P}\left(1+\frac{\color{blue}{r}}{\color{#a300c1}{n}}\right)^{\large\color{#a300c1}{n}\color{#e85e00}{t}}$$Label Known Values
Principal Value $$= P = $9{,}300$$Interest Rate `= r = 4.5% \text(per annum) = 0.045 \text((as a decimal))`Time Elapsed `= t = 3` yearsNumber of times compounded per year `= n = 1 \text((Annually))`Solve for the Amount `(A),` using the formula`A` `=` $$\color\green{P}\left(1+\frac{\color{blue}{r}}{\color{#a300c1}{n}}\right)^{\large\color{#a300c1}{n}\color{#e85e00}{t}}$$ Compound Interest Formula `=` $$\color\green{$9{,}300}\left(1+\frac{\color{blue}{0.045}}{\color{#a300c1}{1}}\right)^{\large\color{#a300c1}{1}\times\color{#e85e00}{3}}$$ Substitute known values `=` $$(9{,}300)(1.045)^3$$ Simplify `=` $$(9{,}300)(1.141166125)$$ `=` $$10{,}612.84$$ Round to two decimal places $$$10{,}612.84$$ total amount -
Question 3 of 5
3. Question
If you deposit $$$3{,}000$$ into an account earning `7%` interest compounded quarterly, how much money will be in the account after `4` years?Round your answer to two decimal places- `\text(total amount)=$` (3959.79)
Hint
Help VideoCorrect
Fantastic!
Incorrect
Compound Interest Formula
$$A=\color\green{P}\left(1+\frac{\color{blue}{r}}{\color{#a300c1}{n}}\right)^{\large\color{#a300c1}{n}\color{#e85e00}{t}}$$Label Known Values
Principal Value $$= P = $3{,}000$$Interest Rate `= r = 7% \text(per annum) = 0.07 \text((as a decimal))`Time Elapsed `= t = 4` yearsNumber of times compounded per year `= n = 4 \text((Quarterly))`Solve for the Amount `(A),` using the formula`A` `=` $$\color\green{P}\left(1+\frac{\color{blue}{r}}{\color{#a300c1}{n}}\right)^{\large\color{#a300c1}{n}\color{#e85e00}{t}}$$ Compound Interest Formula `=` $$\color\green{3{,}000}\left(1+\frac{\color{blue}{0.07}}{\color{#a300c1}{4}}\right)^{\large\color{#a300c1}{4}\times\color{#e85e00}{4}}$$ Substitute known values `=` $$(3{,}000)(1.0175)^{16}$$ Simplify `=` $$(3{,}000)(1.3109929351)$$ `=` $$3{,}959.79$$ Round to two decimal places $$$3{,}959.79$$ total amount -
Question 4 of 5
4. Question
If you deposit $$$5{,}400$$ into an account earning `6%` interest compounded quarterly, how much money will be in the account after `5` years?Round your answer to two decimal places- `\text(total amount)=$` (7273.02)
Hint
Help VideoCorrect
Keep Going!
Incorrect
Compound Interest Formula
$$A=\color\green{P}\left(1+\frac{\color{blue}{r}}{\color{#a300c1}{n}}\right)^{\large\color{#a300c1}{n}\color{#e85e00}{t}}$$Label Known Values
Principal Value $$= P = $5{,}400$$Interest Rate `= r = 6% \text(per annum) = 0.06 \text((as a decimal))`Time Elapsed `= t = 5` yearsNumber of times compounded per year `= n = 4 \text((Quarterly))`Solve for the Amount `(A),` using the formula`A` `=` $$\color\green{P}\left(1+\frac{\color{blue}{r}}{\color{#a300c1}{n}}\right)^{\large\color{#a300c1}{n}\color{#e85e00}{t}}$$ Compound Interest Formula `=` $$\color\green{5{,}400}\left(1+\frac{\color{blue}{0.06}}{\color{#a300c1}{4}}\right)^{\large\color{#a300c1}{4}\times\color{#e85e00}{5}}$$ Substitute known values `=` $$(5{,}400)(1.015)^{20}$$ Simplify `=` $$(5{,}400)(1.4346855007)$$ `=` $$7{,}273.02$$ Round to two decimal places $$$7{,}273.02$$ total amount -
Question 5 of 5
5. Question
If you deposit $$$3{,}000$$ into an account earning `7%` interest compounded monthly, how much money will be in the account after `4` years?Round your answer to two decimal places- `\text(total amount)=$` (3966.16)
Hint
Help VideoCorrect
Correct!
Incorrect
Compound Interest Formula
$$A=\color\green{P}\left(1+\frac{\color{blue}{r}}{\color{#a300c1}{n}}\right)^{\large\color{#a300c1}{n}\color{#e85e00}{t}}$$Identify the given values
Principal Value $$= P = $3{,}000$$Interest Rate `= r = 7% \text(per annum) = 0.07 \text((as a decimal))`Time Elapsed `= t = 4` yearsNumber of times compounded per year `= n = 12 \text((Monthly))`Solve for the Amount `(A),` using the formula`A` `=` $$\color\green{P}\left(1+\frac{\color{blue}{r}}{\color{#a300c1}{n}}\right)^{\large\color{#a300c1}{n}\color{#e85e00}{t}}$$ Compound Interest Formula `=` $$\color\green{3{,}000}\left(1+\frac{\color{blue}{0.07}}{\color{#a300c1}{12}}\right)^{\large\color{#a300c1}{12}\times\color{#e85e00}{4}}$$ Plug in the known values `=` $$(3{,}000)(1.005833)^{48}$$ `=` $$(3{,}000)(1.327053878)$$ `=` $$3{,}966.16$$ Round to two decimal places $$$3{,}966.16$$ total amount