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6.02 Compound interest using the financial application

Interactive practice questions

$\$3000$$3000 is invested at an interest rate of $5%$5% p.a. compounded annually. Find the value of the investment after $17$17 years in dollars.

Round your answer to the nearest cent.

Easy
Approx 2 minutes
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$\$3000$$3000 is invested at an interest rate of $4%$4% p.a. compounded quarterly. Find the value of the investment after $17$17 years in dollars.

$\$13000$$13000 is borrowed at an interest rate of $2.5%$2.5% p.a. compounded semi-annually. Find how much is owed after $3.5$3.5 years in dollars.

$\$10000$$10000 is invested at an interest rate of $2.7%$2.7% p.a. compounded monthly. Find how much the investment is worth after $18$18 months in dollars.

Outcomes

ACMGM096

with the aid of a calculator or computer-based financial software, solve problems involving compound interest loans or investments; for example, determining the future value of a loan, the number of compounding periods for an investment to exceed a given value, the interest rate needed for an investment to exceed a given value

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