Compound Interst Practice

Suppose you have an investment of $1300 earning 5% interest compounded semiannually for 10 years.

What is the rate (after converting a percent to a decimal)?

Suppose you have an investment of $1300 earning 5% interest compounded semiannually for 10 years.

What is the n value, the number of times interest will be compounded per year?

Suppose you have an investment of $1300 earning 5% interest compounded semiannually for 10 years.

What is the t value, the number of years your account will earn interest?

Why is calculating compound interest on your basic 4 function calculator app a bad idea?

Use the calculator on Desmos.com/scientific to determine your answer:

Suppose you have an investment of $1300 earning 5% interest compounded semiannually for 10 years.

What will the balance be of the account after 10 years to the nearest cent?

Determine the final amount for an investment of $300 earning 4.52% interest compounded quarterly for 3 years.

Find the final amount for an investment of $5000 earning 6.3% interest compounded daily for 1 year.

Diana invests $800 today in an account earning 6% and compounded annually. How much will it be worth in 5 years? Round to the nearest dollar.

Diana's cousing invests $800 today in an account earning 6% and calculated using SIMPLE INTEREST. How much will it be in the account in 5 years? Round to the nearest dollar. (Remember, I=P*R*T is simple interest)

Given the same rate and time, will your account make more money with simple interest or compound interest?