5. Interest, investments and loans
Interactive practice questions
Which three of the following statements about compound interest are true?
Interest is earned on the principal.
A
The interest in any time period is calculated using only the original principal.
B
Interest is earned on any accumulated interest.
C
The amount of interest earned in any time period changes from one period to the next.
D
Easy
< 1min
If $\$3000$$3000 is invested for $3$3 years with an interest rate of $5%$5% per annum, calculate the final balance, rounded to the nearest cent, if:
Easy
2min
If $\$100000$$100000 is invested for $6$6 years with an interest rate of $10%$10% per annum, calculate the final balance, rounded to the nearest cent, if:
Easy
1min
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