Interactive practice questions
Valentina's investment of $\$8000$$8000 earns interest at $2%$2% p.a., compounded semiannually over $2$2 years. Answer the following questions by repeated multiplication.
What is the value of the investment after $2$2 years, to the nearest cent?
What is the amount of interest earned to the nearest cent?
A $\$1610$$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$$2700 investment earns interest at $4.7%$4.7% p.a. compounded semiannually over $11$11 years. Use the compound interest formula to calculate the value of this investment to the nearest cent.
A $\$3400$$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.