Compound Interest — Test Answers

Solve the problem. Round to the nearest cent.Jason’s savings account has a balance of $1847. After 5 years, what will the amount of interest be at 6% compounded semiannually?

Money is invested into an account earning 4.25% interest compounded annually. If the accumulated value after 18 years will be $25,000, approximately how much money is presently in the account?

An investment of $7,650 earns interest at the rate of 5% and is compounded quarterly. What is the accumulated value of the investment at the end of 9 years?

Solve the problem. Round to the nearest cent. Brian wants to have $7000 in the bank in 10 years. He deposits $3000 today at 8% interest compounded semiannually,After keeping the money in the bank for 10 years, how much more money will he need to add to his account to reach the desired balance of $7000?

Solve the problem. Round to the nearest cent.Steve’s savings account has a balance of $1287. After 4 years, what will the amount of interest be at 6% compounded semiannually?

Solve the problem. Round to the nearest cent.Andrea’s savings account has a balance of $3668. After 3 years, what will the amount of interest be at 4% compounded quarterly?

A principal of $5,350 is placed in an account that earns 3.5% interest. If the interest is compounded annually, how much money will be in the account at the end of 4 years?

Solve the problem. Round to the nearest cent.Great Dish believes that it will need new equipment in 8 years. The equipment will cost $26,000. What lump sum should be invested today at 12%, compounded semiannually, to yield $26,000?

Solve the problem. Round to the nearest cent.Stan's savings account has a balance of $4706. After 4 years, what will the amount of interest be at 4% compounded quarterly?

An investment of $8,350 earns 5.2% interest compounded monthly over 10 years. Approximately how much interest is earned on the investment?

Cameron has decided to diversify his investments in the following way:$3,000 in an account earning 2.7% simple interest$5,000 in a savings account earning 1.8% interest compounded annually$5,000 in a certificate of deposit earning 3.9% interest compounded quarterlyHow much total interest will Cameron earn on his investments at the end of 3 years?

Solve the problem. Round to the nearest cent.Jason’s savings account has a balance of $734. After 5 years, what will the amount of interest be at 10% compounded semiannually?

Solve the problem. Round to the nearest cent.Barbara knows that she will need to buy a new car in 3 years. The car will cost $15,000 by then. How much should she invest now at 7%, compounded quarterly, so that she will have enough to buy a new car?

An investment of $6,530 earns interest at the rate of 4% and is compounded quarterly. What is the accumulated value of the investment at the end of 8 years?

Lakisha just won some money in a sweepstakes drawing. She is considering putting her winnings in a long term investment. To the nearest dollar, how much money would Lakisha need to put into an account earning 5% interest compounded annually in order to have $30,000 at the end of 20 years?