Compound vs Simple Interest Worksheet

[Pages:2]Accelerated Coordinate Algebra

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Compound Interest Worksheet

1. $15,000 is deposited in an account that pays 3.5 % annual interest. Compare the amount in the account between a simple interest account and one that compounds annually.

Simple

Compound

2. You borrowed $30,200 for 15 years at an interest rate of 13.6%. Compare the amount of interest on that account between a simple interest account and an account that compounds monthly.

Simple

Compound

3. You deposit $2000 in an account that earns 5% annual interest. Compare the balance in the account at the end of 2 years for a simple interest account and a compound interest account, compounded monthly.

4. You deposit $30,000 in an account that earns 5 % interest, compounded weekly. Find the balance in the account at the end of 5 years, at the end of 10 years, and at the end of 20 years.

5. Your investment of $18,100 at 13.6% compounded quarterly for 7 years and 6 months will be worth how much?

6. You deposit $8000 in an account that earns 2.5% annual interest. Compare the balance in the account at the end of 4 years for a simple interest account and an account compounded quarterly.

7. You gave your friend a short term 2 year loan of $43,000 at 3% compounded annually. What will be your total return?

8. $50,000 is deposited in an account that pays 6.5 % annual interest. You want to track the balance of the account over the course of 10 years. Compare the balance in the account after 2 years, 5 years, and 10 years for a simple interest account and an account compounded semi-annually.

9. You borrowed $59,000 for 6 years at 11% which was compounded semi-annually. What total will you pay back?

10. $6500 is deposited in an account that pays 5.5 % annual interest. Compare the value of the account if you compound semi-annually and quarterly. Find the value of the account after 10 years, after 15 years, and after 20 years for both.

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