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Compound Interest Quiz 5 (10 MCQs)

Quiz Instructions

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1. What would be the compound interest obtained on an amount of Rs. 4800 at the rate of 10 % per annum for 2 years?
2. Kennedy won $ 3,000 from a radio contest. If she puts this money in a bank account that earns 2.9% interest compounded quarterly, how much interest will she earn in 10 years?
3. Angelina and Brad Peach plan to buy a time-share in twenty years of SGD21,000. In order to have adequate funds to do so, the Peach want to make a deposit to their money market fund today. Assume that they will be able to earn an investment rate of 4%, compounded annually. How much will Angelina and Brad need to deposit today to achieve their goal? (Round off to the nearest dollar.)
4. Cherrie invests $ 3,686 in a retirement account with a fixed annual interest rate of 7% compounded 4 times per year. What will the account balance be after 18 years?
5. If everything else is the same, which is better for the lender, a simple interest loan or a compound interest loan?
6. A 1.25 L bottle of soft drink costs $ 1.25. With the annual inflation rate over the next 4 years expected to be 4%, the bottle will cost:
7. Find the compound interest on Rs.16,000 at 20% per annum for 9 months, compounded quarterly
8. Mike invests $ 7,076 in a savings account with a fixed annual interest rate of 4% compounded 12 times per year. What will the account balance be after 8 years?
9. Macie just graduated from college. She wants $ 100,000 in her savings account after 10 years. How much should she deposit in her account now at a 3.8% interest rate order to meet that goal. Round to the nearest dollar.
10. Pierre deposits $ 9,000 in a CD that pays 8% interest, compounded semiannually. How much interest does the account earn in the first 6 months?
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