iGCSE (2021 Edition)
12.04 Compound interest
Interactive practice questions
$\$3900$$3900 is invested for three years at a rate of $10%$10% p.a., compounding annually.
a
Complete the table below to determine the final value of the investment.
| Balance + interest | Total balance | Interest earned | |
|---|---|---|---|
| First year | $-$− | $\$3900$$3900 | $\$390$$390 |
| Second year | $\$3900+\$390$$3900+$390 | $\$4290$$4290 | $\$429$$429 |
| Third year | $\$4290+\$$$4290+$$\editable{}$ | $\$$$$\editable{}$ | $\$$$$\editable{}$ |
| Fourth year | $\$4719$$4719$+$+$\$$$$\editable{}$ | $\$$$$\editable{}$ | $-$− |
b
Calculate the total interest earned over the three years.
Easy
4min
$\$3700$$3700 is invested for three years at a rate of $7%$7% p.a., compounding annually.
Easy
4min
$\$3000$$3000 is invested at $4%$4% p.a., compounded annually. The table below tracks the growth of the principal over three years.
Easy
5min
Dave's investment of $\$6000$$6000 earns interest at $2%$2% p.a, compounded annually over $3$3 years.
Answer the following questions by repeated multiplication.
Easy
2min
Sign up to access Practice Questions
Get full access to our content with a Mathspace account