Compound Interest — Unit test Answers

Money is invested into an account earning 4.25% interest compounded annually. If the accumulated value after 18 years will be $25,000, approximately how much money is presently in the account?a.$5,875b.$11,820c.$19,125d.$23,960

An investment of $7,650 earns interest at the rate of 5% and is compounded quarterly. What is the accumulated value of the investment at the end of 9 years?a.$11,964.17b.$11,867.66c.$9,338.56d.$8,554.94

In the formula I=P·r·t, what does P stand for?a.Percent: the interest rate expressed as a percentageb.Principal: the amount of money you initially investedc.Period: how often the interest is calculatedd.Payout: how much money you end up with

Nicole deposits $2,136 in a savings account paying 5.36% interest. To the nearest dollar, how much money does Nicole have in total after nine years?a.$213b.$1,030c.$1,272d.$3,166

June has a savings account with an annual simple interest rate of 2.6%. She hopes to gain $6,500 in interest over a period of eleven years. To accomplish this, June invested $17,801 in the account, but later realized that this was not enough money. To the nearest dollar, how much more money should June have initially invested to reach her goal?a.$6,335b.$3,715c.$1,409d.$4,926

Examine today’s stock listing for SFT Legal, shown below.52 wk High52 wk LowSymbolDiv.CloseNet Change74.8044.61SFT8.9456.115.74What was the price of SFT Legal yesterday?a.$47.17b.$56.11c.$50.37d.$61.85

In the formula I=P·r·t, what does r stand for? a. Rate: the percent that interest is paid annually as a decimal b. Ratio: the size of the interest interval compared to time c. Return: how much money you end up earning d. Reserves: how much money you have in the investment Please select the best answer from the choices provided

Henry and Walter open savings accounts at the same time. Henry invests $6,500 at 4.54% simple interest, and Walter invests $7,100 at 4.74% simple interest. After eight years, how much more interest has Walter earned than Henry?a.$331.52b.$420.67c.$631.52d.$719.59

Ken has just retired. His Roth IRA has a present value of $524,856.00 and has an interest rate of 3.4%, compounded annually. In addition, he receives a yearly pension of $32,615.12. Given that Ken plans to draw from his Roth IRA for the next fifteen years, find his total annual income.a.$86,483.17b.$77,862.30c.$50,503.76d.$49,915.55

If you invest $8,600 at a 3.95% simple annual interest rate, approximately how long will it take for you to have a total of $21,000? a. 25.3 years b. 36.5 years c. 45.9 years d. 60.7 years Please select the best answer from the choices provided

What is the difference between inflation and deflation?

If you wish to calculate the interest on an investment with a rate of 6.17%, what number will you plug into your equation?a.0.00617b.0.0617c.0.617d.6.17

nominal measurementconsumer price indexannual rateUS Bureau of Labor statistic

An investment of $1,000 is earning interest at the rate of 3.8% compounded daily over 3 years. Approximately how much interest is earned on the investment? a. $892.26 b. $1120.75 c. $120.75 d. $38.73 Please select the best answer from the choices provided

What are the signs of low inflation? Check all that apply.Demand steadily rises.Demand steadily falls.Prices continue to increase.Prices continue to decrease.The economy grows in a healthy way.The economy stagnates and struggles.