9. Interest 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
$\$8000$$8000 is invested for $3$3 years at a rate of $3%$3% p.a. compounded annually.
Easy
6min
$\$3000$$3000 is invested at $4%$4% p.a., compounded annually. The table below tracks the growth of the principal over three years.
Easy
5min
A $\$7510$$7510 investment earns interest at $4.5%$4.5% p.a. compounded annually over $6$6 years. Use the compound interest formula to calculate the value of this investment to the nearest cent.
Easy
2min
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