Math Practice Problems - Compound Interest

Compound Interest - Sample Math Practice Problems

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Complexity=20

Answer the following questions involving compound interest. Input all answers to the nearest dollar

1.	Interest Rate: 4% monthly Starting Balance: $124 Time Passed: 4 months How much interest has accrued if calculated as compound interest? What is the new total balance?	Interest: Total balance:
2.	Interest Rate: 2% weekly Starting Balance: $169 Time Passed: 11 weeks How much interest has accrued if calculated as compound interest? What is the new total balance?	Interest: Total balance:

Complexity=50

Answer the following questions involving compound interest. Input all answers to the nearest dollar

1.	Interest Rate: 9% daily Starting Balance: $467 Time Passed: 14 days How much interest has accrued if calculated as compound interest? What is the new total balance?	Interest: Total balance:
2.	Interest Rate: 1% monthly Starting Balance: $345 Time Passed: 8 months How much interest has accrued if calculated as compound interest? What is the new total balance?	Interest: Total balance:

Complexity=100

Answer the following questions involving compound interest. Input all answers to the nearest dollar

1.	Interest Rate: 9% daily Starting Balance: $659 Time Passed: 6 days How much interest has accrued if calculated as compound interest? What is the new total balance?	Interest: Total balance:
2.	Interest Rate: 1% daily Starting Balance: $517 Time Passed: 15 days How much interest has accrued if calculated as compound interest? What is the new total balance?	Interest: Total balance:

Answers

Complexity=20

Answer the following questions involving compound interest. Input all answers to the nearest dollar

#	Problem	Correct Answer	Your Answer
1	Interest Rate: 4% monthly Starting Balance: $124 Time Passed: 4 months How much interest has accrued if calculated as compound interest? What is the new total balance?	Interest: Total balance:
Solution Compound Interest: Total Balance = P(1 + R)^T P = principle = starting balance = $124 R = interest rate = 4% T = time = 4 years Total balance = principle × (1 + interest rate)^time = 124 × (1 + (4 / 100))⁴ = $145 Interest accrued = total balance - starting balance = $145 - $124 = $21

#	Problem	Correct Answer	Your Answer
2	Interest Rate: 2% weekly Starting Balance: $169 Time Passed: 11 weeks How much interest has accrued if calculated as compound interest? What is the new total balance?	Interest: Total balance:
Solution Compound Interest: Total Balance = P(1 + R)^T P = principle = starting balance = $169 R = interest rate = 2% T = time = 11 years Total balance = principle × (1 + interest rate)^time = 169 × (1 + (2 / 100))¹¹ = $210 Interest accrued = total balance - starting balance = $210 - $169 = $41

Complexity=50

Answer the following questions involving compound interest. Input all answers to the nearest dollar

#	Problem	Correct Answer	Your Answer
1	Interest Rate: 9% daily Starting Balance: $467 Time Passed: 14 days How much interest has accrued if calculated as compound interest? What is the new total balance?	Interest: Total balance:
Solution Compound Interest: Total Balance = P(1 + R)^T P = principle = starting balance = $467 R = interest rate = 9% T = time = 14 years Total balance = principle × (1 + interest rate)^time = 467 × (1 + (9 / 100))¹⁴ = $1561 Interest accrued = total balance - starting balance = $1561 - $467 = $1094

#	Problem	Correct Answer	Your Answer
2	Interest Rate: 1% monthly Starting Balance: $345 Time Passed: 8 months How much interest has accrued if calculated as compound interest? What is the new total balance?	Interest: Total balance:
Solution Compound Interest: Total Balance = P(1 + R)^T P = principle = starting balance = $345 R = interest rate = 1% T = time = 8 years Total balance = principle × (1 + interest rate)^time = 345 × (1 + (1 / 100))⁸ = $374 Interest accrued = total balance - starting balance = $374 - $345 = $29

Complexity=100

Answer the following questions involving compound interest. Input all answers to the nearest dollar

#	Problem	Correct Answer	Your Answer
1	Interest Rate: 9% daily Starting Balance: $659 Time Passed: 6 days How much interest has accrued if calculated as compound interest? What is the new total balance?	Interest: Total balance:
Solution Compound Interest: Total Balance = P(1 + R)^T P = principle = starting balance = $659 R = interest rate = 9% T = time = 6 years Total balance = principle × (1 + interest rate)^time = 659 × (1 + (9 / 100))⁶ = $1105 Interest accrued = total balance - starting balance = $1105 - $659 = $446

#	Problem	Correct Answer	Your Answer
2	Interest Rate: 1% daily Starting Balance: $517 Time Passed: 15 days How much interest has accrued if calculated as compound interest? What is the new total balance?	Interest: Total balance:
Solution Compound Interest: Total Balance = P(1 + R)^T P = principle = starting balance = $517 R = interest rate = 1% T = time = 15 years Total balance = principle × (1 + interest rate)^time = 517 × (1 + (1 / 100))¹⁵ = $600 Interest accrued = total balance - starting balance = $600 - $517 = $83

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