 New Zealand
Level 6 - NCEA Level 1

Compound Interest - Finding other values

Interactive practice questions

Isabelle is considering whether it would be greatly beneficial for her to invest her money now rather than $5$5 years down the track. For an initial investment of $\$3000$$3000, the function A=3000\left(1.026\right)^tA=3000(1.026)t models how value her money will grow to in tt years. Regardless of whether she invests now or in 55 years time, she will close the account when she retires (more than 88 years in the future). How many times more will her closing balance be if she starts investing now rather than 55 years down the track? Give your answer correct to two decimal places. Easy Approx 4 minutes Sign up to try all questions At what annual compound interest rate, rr, must Joanne invest \220$$220 if she wishes to triple her money in $17$17 years? Give your answer as a percentage correct to two decimal places.

At what annual compound interest rate, $r$r, must you invest your money so that $\$1000$$1000 grows twofold in 1616 years? Give your answer as a percentage, correct to 2 decimal places. Find the principal, PP, that would need to be invested at 6%6% p.a. compounded semiannually to accumulate \7600$$7600 in $9$9 years. Give your answer to the nearest dollar.

Outcomes

NA6-3

Apply everyday compounding rates

91026

Apply numeric reasoning in solving problems