Compound Interest Problems

Compound Interest Problems

**Page 1**

1.

A sum of money doubles itself at compound interest in 15 years. In how many years will it become eight times?

Correct answer : (0)

2.

How to find interest compounded continuously average amount?

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3.

This afternoon, you deposited $\$$1,000 into a retirement savings account. The account will compound interest at 6 percent annually. You will not withdraw any principal or interest until you retire in forty years. Which one of the following statements is correct?

A.The interest you earn six years from now will equal the interest you earn ten years from now.

B.The interest amount you earn will double in value every year.

C.The total amount of interest you will earn will equal $\$$1,000 ´ .06 ´ 40.

D.The present value of this investment is equal to $\$$1,000.

E.The future value of this amount is equal to $\$$1,000 ´ (1 + 40)$^.06$

Correct answer : (0)

4.

You invested $\$$1,650 in an account that pays 6.5 percent simple interest. How much more could you have earned over a 21-year period if the interest had compounded annually?

Correct answer : (0)