# Worksheet: Compound Interest

In this worksheet, we will practice dealing with compound interest.

**Q4: **

An investment account with an annual interest rate of was opened with an initial deposit of . Compare the values of the account after 9 years when the interest is compounded annually, quarterly, monthly, and continuously.

- Aannually: , quarterly: , monthly: , continuously:
- Bannually: , quarterly: , monthly: , continuously:
- Cannually: , quarterly: , monthly: , continuously:
- Dannually: , quarterly: , monthly: , continuously:
- Eannually: , quarterly: , monthly: , continuously:

**Q5: **

Maged wants to save for a down payment on a home. How much will he need to invest in an account with APR, compounding daily, in order to reach his goal in 5 years?

**Q6: **

Sally deposits $1β500 into a retirement fund each year. The fund earns annual interest, compounded monthly. If she opened her account when she was 19 years old, how much will she have saved by the time she is 55? How much of that amount will be interest earned?

- A$28β429.43, $10β429.43
- B$4β008.23, $2β508.23
- C$4β008.23, $5β508.23
- D$28β429.43, $26β929.43
- E$28β000.43, $26β500.43

**Q7: **

Amir deposits $100 in a savings account that gives him a interest on his savings each month. Adam has $350 in a cashing account that he withdraws $5 from each month. After how many months do the two have approximately the same bank balance?

**Q8: **

Which of the following functions describes the total amount of money available after investing at a rate of for years, compounded continuously?

- A
- B
- C
- D

**Q9: **

Sameh decides to save every month for 4 years. He can save in an account that pays annual interest of or an account that pays annual interest of compounded monthly. Which account will give the better return on his investment?

- A the account that pays compounded monthly
- B the account that pays an annual interest of

**Q10: **

A man deposited 1,569 LE in a bank account with an interest rate of per year. Determine how much money was in the account 5 years later, given that the interest was compounded quarterly. Give your answer correct to one decimal place.

**Q11: **

The price of an article increases by every year. Given that its original price was 3β652 LE, determine its price after 7 years. Give your answer to the nearest pound.

- A 1β887 LE
- B 27β865 LE
- C 23β263 LE
- D 6β676 LE

**Q12: **

A man deposited 1,078 LE in a bank account with an interest rate of per year. Determine how much money was in the account 5 years later, given that the interest was compounded monthly. Give your answer correct to one decimal place.

**Q13: **

A man deposited 5,094 LE in a bank account with an interest rate of per year. Determine how much money was in the account 19 years later, given that the interest was compounded annually. Give your answer correct to two decimal places.

**Q14: **

Bank offers depositors annual interest compounded once per year. Bank offers per year, compounded monthly.

Write an explicit formula for the return after years on a deposit of dollars with both offers.

- ABank A: , Bank B:
- BBank A: , Bank B:
- C Bank A: , Bank B:
- DBank A: , Bank B:
- EBank A: , Bank B:

Which bankβs offer is better?

- ABank B
- BBoth offers are equivalent.
- CBank A

**Q15: **

To the nearest tenth of a year, how long will it take for an investment of to double if the interest rate is per year, compounded continuously?

**Q16: **

An investment compounded continuously tripled in five years. Find, to the nearest percent, the annual interest rate.

**Q17: **

Samar invested at an interest rate of compounded continuously. After how many years and months will her investment be worth ?

- A 0 years and 8 months
- B 7 years and 7 months
- C 7 years and 8 months
- D 7 years and 9 months
- E 7 years and 10 months