Matching Pairs Computing Compound InterestOnline version Compound Interest:: A = P(1+r)^t A = total amount accrued P = Principal Balance r = rate as a decimal t = time in years by Garrett, Stephanie 1 A coin had a value of $1.17 in 1995. Its value has been increasing at 9% per year. What is the accrued value after 5 years? 2 Determine the amount of interest earned on a $2500 investment if it is invested at 5.25% annual interest compounded monthly for four years. 3 Lucas invests $12,500 in an account that earns 6.2% compound interest. If Lucas does not make any additional deposits or withdrawals, how much will be in his account after 60 months? 4 Mr. and Mrs. Boyce bought a house for $96,000 in 1995. Real estate values in their area increase approximately 4% each year. What was the value of the house in 2007? 5 T.J. invests $8,100 in an account that earns 7.2% compound interest. If T.J. does not make any additional deposits or withdrawals, how much interest will he earn after 7 years? 6 Landry earned $2,300 over the summer and decided to invest it in an account that earns 4% annual compound interest. If Landry does not make any other deposits or withdrawals, how much will be in her account after 20 years? 7 The Garcias have $12,000 in a savings account. The bank pays 3.5% interest on savings accounts, compounded annually. Find the total balance after three years. 8 Abigail and Vicki both invest $14,000 into savings accounts that earn compound interest. If Abigail’s account earns 4.5% interest and Vicki’s account earns 6% interest, how much more interest will Vicki have earned after 7 years? 9 Gabriella decides to invest $6,500 into a savings account. She finds an account that earns 4.5% interest, and she invests the money for 5 years without making any other deposits or withdrawals. How much interest will Gabriella’s money earn if the account earns compound interest? 10 When Lisa and Tom had their first child, they put $7,500 into a savings account that earns 6% compound interest. If Lisa and Tom did not add or remove anything from the savings account, how much interest will they have earned after 4 years? $5,077.97 $1,968.58 $5,039.58 $1.80 $153,699.09 $567.81 $1,600.18 $1,998.75 $13,304.61 $16,886.23
