NZ Level 6 (NZC) Level 1 (NCEA) Compound Interest - Compounding Variations

## Interactive practice questions

Valentina's investment of $\$8000$$8000 earns interest at 2%2% p.a., compounded semiannually over 22 years. Answer the following questions by repeated multiplication. a What is the value of the investment after 22 years, to the nearest cent? b What is the amount of interest earned to the nearest cent? Easy Approx 4 minutes Sign up to try all questions A \1610$$1610 investment earns interest at $4.5%$4.5% p.a. compounded quarterly over $10$10 years.

Use the compound interest formula to calculate the value of this investment to the nearest cent.

A $\$2700$$2700 investment earns interest at 4.7%4.7% p.a. compounded semiannually over 1111 years. Use the compound interest formula to calculate the value of this investment to the nearest cent. A \3400$$3400 investment earns interest at $2%$2% p.a. compounded monthly over $3$3 years. Use the compound interest formula to calculate the value of this investment to the nearest cent.

### Outcomes

#### NA6-3

Apply everyday compounding rates

#### 91026

Apply numeric reasoning in solving problems