Australia
10&10a
5.01 Compound interest
Interactive practice questions
$\$3500$$3500 is invested for three years at a rate of $10%$10% p.a., compounding annually.
a
Complete the table row for the Third Year.
| Balance + interest | Total balance | Interest earned | |
|---|---|---|---|
| First year | $-$− | $\$3500$$3500 | $\$350$$350 |
| Second year | $\$3500+\$350$$3500+$350 | $\$3850$$3850 | $\$385$$385 |
| Third year | $\$3850+\$$$3850+$$\editable{}$ | $\$$$$\editable{}$ | $\$$$$\editable{}$ |
| Fourth year | $\$$$$\editable{}$ | $\$$$$\editable{}$ | $-$− |
b
Complete the table row for the Fourth Year to determine the final value of the investment.
| Balance + interest | Total balance | Interest earned | |
|---|---|---|---|
| First year | $-$− | $\$3500$$3500 | $\$350$$350 |
| Second year | $\$3500+\$350$$3500+$350 | $\$3850$$3850 | $\$385$$385 |
| Third year | $\$3850+\$$$3850+$$385$385 | $\$$$$4235$4235 | $\$$$$423.50$423.50 |
| Fourth year | $\$4235$$4235$+$+$\$$$$\editable{}$ | $\$$$$\editable{}$ | $-$− |
c
Calculate the total interest earned over the three years.
Easy
4min
$\$3200$$3200 is invested for three years at a rate of $6%$6% p.a., compounding annually.
Easy
4min
Tara borrows $\$5000$$5000 at a rate of $4.5%$4.5% p.a, compounding annually.
Easy
3min
Ivan borrows $\$3000$$3000 at a rate of $6.9%$6.9% p.a, compounding annually.
Easy
2min
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