Compound vs Simple Interest Worksheet

Accelerated Coordinate Algebra

Name ___________________________________

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.

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download