5. Interest, investments and loans
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{}$ | $\$$$$\editable{}$ | $-$− |
b
Calculate the total interest earned over the three years.
Medium
4min
$\$3700$$3700 is invested for three years at a rate of $7%$7% p.a., compounding annually.
Medium
4min
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