Interest and Borrowing

Hong Kong

Stage 1 - Stage 3

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.

a

What is the value of the investment after $2$2 years, to the nearest cent?

b

What is the amount of interest earned to the nearest cent?

Easy

Approx 4 minutes

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.

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