Practice Quiz - Section 3-2 (Form A) - Compound Interest

Multiple-choice exercise

Work out the problem on paper and then choose the letter for your answer. After you have successfully answered all questions, look at the top of the page to see how you did.

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If $10,000 is invested at 9% compounded annually, what is the amount after 8 years?

$19925.63

$17,200

$5018.66

None of the answers given; click to see the solution.

If $2500 is invested at 7.2% compounded quarterly, what is the amount after 3 years?

$3096.80

$5758.08

$2637.44

$3079.81

None of the answers given; click to see the solution.

If an investment pays 9% compounded monthly, how much should you deposit now in order to have $5000 4 years from now?

$3493.07

$7157.03

$3542.13

None of the answers given; click to see the solution.

How much interest will be earned on an investment of $6500 at 12% compounded semi-annually for 5 years?

$5140.51

$11640.51

$4955.22

None of the answers given; click to see the solution.

Suppose you have just been given a bonus of $5000 and you have the opportunity to invest it at 9% compounded monthly. How many years will it take at this rate for the investment to grow to $8000?

About 5.24 years

About 62.9 years

About 6.7 years

None of the answers given; click to see the solution.

Find the effective rate of 9.6% compounded monthly.

10.03%

.8%

9.6%

None of the answers given; click to see the solution.