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AustraliaVIC
VCE 11 General 2023

4.07 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
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U2.AoS4.8

scientific notation, exact and approximate answers, significant figures and rounding

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