Interactive practice questions
$\$4000$$4000 is invested at $2%$2% p.a., compounded annually. The table below tracks the growth of the principal over three years.
| Time Period $n$n (years) | Value at beginning of time period | Value at end of time period | Interest earned in time period |
|---|---|---|---|
| $1$1 | $\$4000$$4000 | $\text{B}$B | $\text{A}$A |
| $2$2 | $\text{C}$C | $\$4161.60$$4161.60 | $\text{D}$D |
| $3$3 | $\$4161.60$$4161.60 | $\$4244.83$$4244.83 | $\text{E}$E |
a
What value should go in cell $\text{A}$A?
b
What value should go in cell $\text{B}$B?
c
What value should go in cell $\text{C}$C?
d
What value should go in cell $\text{D}$D?
e
What value should go in cell $\text{E}$E?
f
What is the total interest earned over the three years?
Easy
4min
Which three of the following statements about compound interest are true?
Easy
< 1min
Dave's investment of $\$6000$$6000 earns interest at $2%$2% p.a, compounded annually over $3$3 years.
Answer the following questions by repeated multiplication.
Easy
2min
$\$3900$$3900 is invested for three years at a rate of $10%$10% p.a., compounding annually.
Easy
4min
Sign up to access Practice Questions
Get full access to our content with a Mathspace account