Compare compounding periods and continuous interest
12th grade (Year 13 in England) · 16 questions · Common Core: HSF.LE.A.2, HSA.SSE.B.3.C · England: A-level Pure Mathematics
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Question 1
At 3% a year, which compounding gives the most money after 5 years?
- A. Yearly
- B. Monthly
- C. Continuously
- D. They all give the same
Question 2
$8500 is invested at 5% a year, compounded monthly. Use A = P(1 + r/n)^(nt) to find the value after 8 years, to 2 decimal places.
Answer
Question 3
$9000 earns 3% a year compounded continuously: A = Pe^(rt). Find the value after 8 years, to 2 decimal places.
Answer
Question 4
At 3% a year, which compounding gives the most money after 5 years?
- A. Yearly
- B. Monthly
- C. Continuously
- D. They all give the same
Question 5
$8500 is invested at 6% a year, compounded quarterly. Use A = P(1 + r/n)^(nt) to find the value after 7 years, to 2 decimal places.
Answer
Question 6
$1000 earns 5% a year compounded continuously: A = Pe^(rt). Find the value after 9 years, to 2 decimal places.
Answer
Question 7
At 3% a year, which compounding gives the most money after 5 years?
- A. Yearly
- B. Monthly
- C. Continuously
- D. They all give the same
Question 8
$4500 is invested at 6% a year, compounded quarterly. Use A = P(1 + r/n)^(nt) to find the value after 2 years, to 2 decimal places.
Answer
Question 9
$3000 earns 2% a year compounded continuously: A = Pe^(rt). Find the value after 10 years, to 2 decimal places.
Answer
Question 10
At 5% a year, which compounding gives the most money after 5 years?
- A. Yearly
- B. Monthly
- C. Continuously
- D. They all give the same
Question 11
$6500 is invested at 2% a year, compounded quarterly. Use A = P(1 + r/n)^(nt) to find the value after 2 years, to 2 decimal places.
Answer
Question 12
$8000 earns 2% a year compounded continuously: A = Pe^(rt). Find the value after 7 years, to 2 decimal places.
Answer
Question 13
At 3% a year, which compounding gives the most money after 5 years?
- A. Yearly
- B. Monthly
- C. Continuously
- D. They all give the same
Question 14
$5500 is invested at 6% a year, compounded quarterly. Use A = P(1 + r/n)^(nt) to find the value after 3 years, to 2 decimal places.
Answer
Question 15
$4000 earns 2% a year compounded continuously: A = Pe^(rt). Find the value after 4 years, to 2 decimal places.
Answer
Question 16
At 8% a year, which compounding gives the most money after 5 years?
- A. Yearly
- B. Monthly
- C. Continuously
- D. They all give the same
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