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Compound Interest- 1/27

Last updated about 4 years ago

4 questions

Instructions

Show your work on a separate sheet of paper. 

1

Question 1

1.

You deposit $2200 in a bank account that pays 3% annual interest compounded quarterly. Find the balance after 4 years. Round to the nearest cent.

1

Question 2

2.

You deposit $2200 in a bank account that pays 3% annual interest compounded monthly. Find the balance after 4 years. Round to the nearest cent.

1

1

Question 3

3.

You deposit $2200 in a bank account that pays 3% annual interest compounded daily. Find the balance after 4 years. Round to the nearest cent.

Question 4

4.

Looking at the three situations in questions #1-3, which account pays you the most interest?

Compounded quarterly (#1)

Compounded monthly (#2)

Compounded daily (#3)