How to find compound interest

Practice Questions

ACT Math › How to find compound interest

Questions
10
1

If an account has interest compounded quarterly at an annual rate of , what is the balance of the account after years of compounding if the initial balance is ? Round to the nearest cent.

2

If an account has interest compounded annually at a rate of , what is the balance of the account after years of compounding if the initial balance is ? Round to the nearest cent.

3

Alice wants to invest money such that in years she has . The interest rate is compounded quarterly. How much should she invest?

4

An account is compounded at a given rate of interest annually for years. What is this rate if the beginning balance for the account was and its ending balance ? Round to the nearest hundredth of a percent.

5

If an account has interest compounded annually at a rate of , what is the balance of the account after years of compounding if the initial balance is ? Round to the nearest cent.

6

Michelle makes a bank deposit of $1,500 at 4.2% annual interest, compounded monthly. Approximately how much money will be in Michelle’s bank account in 3 years?

7

If a cash deposit account is opened with for a three year period at % interest compounded once annually, which of the following is closest to the positive difference between the interest accrued in the third year and the interest accrued in the second year?

8

A five-year bond is opened with in it and an interest rate of %, compounded annually. This account is allowed to compound for five years. Which of the following most closely approximates the total amount in the account after that period of time?

9

Ashley makes a bank deposit of at annual interest, compounded monthly. About how many years will it take her deposit to grow to ?

10

Jack has , to invest. If he invests two-thirds of it into a high-yield savings account with an annual interest rate of , compounded quarterly, and the other third in a regular savings account at simple interest, how much does Jack earn after one year?

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