6. Radicals and exponents
6.16 Compound interest
Interactive practice questions
$\$1000$$1000 is invested at $2%$2% per year, compounded annually. The table below tracks the growth of the principal over three years.
| Time Period $n$n (years) | Value at beginning of time period | Value at end of time period | Interest earned in time period |
|---|---|---|---|
| $1$1 | $\$1000$$1000 | $\text{B}$B | $\text{A}$A |
| $2$2 | $\text{C}$C | $\$1040.40$$1040.40 | $\text{D}$D |
| $3$3 | $\$1040.40$$1040.40 | $\$1061.21$$1061.21 | $\text{E}$E |
a
What value should go in cell $\text{A}$A?
b
What value should go in cell $\text{B}$B?
c
What value should go in cell $\text{C}$C?
d
What value should go in cell $\text{D}$D?
e
What value should go in cell $\text{E}$E?
f
What is the total interest earned over the three years?
Easy
7min
Which three of the following statements about compound interest are true?
Easy
< 1min
Luke's investment of $\$5000$$5000 earns interest at $3%$3% per year, compounded annually over $4$4 years.
Answer the following questions by repeated multiplication.
Easy
3min
$\$4400$$4400 is invested for three years at a rate of $5%$5% per year, compounding annually.
Easy
5min
Sign up to access Practice Questions
Get full access to our content with a Mathspace account