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Mathematics
11th -
University
3rd Block Continuously Compounded Interest HW
15 questions
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- 1. Multiple Choice
If $1,000 is invested at 6% interest, compounded continuously, for three years, what is the ending balance?
$1,225,54
$2,225.54
$1,197.22
$225.54
- 2. Multiple Choice
Change 21.99% into a decimal.
22
2199
.2199
.02199
- 3. Multiple ChoiceConvert 70% to a decimal..07.70.007.01
- 4. Multiple ChoiceConvert 3% to a decimal..03.30.05.06
- 5. Multiple ChoiceMr. T invested $15,000 in an account that pays 5% interest compounding continuously, how much is in the account after 5 years?$15,500.50$19,260.38$19,260.40$21,500.25
- 6. Multiple Choice
How long would it take $7,000 to grow to $35,000 at 6% compounded continuously?
27.6 years
27.1 years
26.0 years
26.8 years
- 7. Multiple Choice
Chelsea put $7500 into an account paying 5% compounded continuously. She now has $10,643.01. How long has the money been in the account?
7 years
6 years
5 years
4 years
- 8. Multiple Choice
What does the A stand for in this formula?
Initial Value
Future Value
Rate
Time
The number of times compounded per year
- 9. Multiple ChoiceWhen would we use this formula? A = Pe rtinterest increases by fixed amountcompound interestcompound continuouslydecreases by fixed percent
- 10. Multiple Choice
Log with a base "e" (loge) is the same thing as...
e
Natural Logarithm (ln)
Common Logarithm (log)
log10
- 11. Multiple ChoiceThe compound interest formula is:
A = P(1 + r)t
What does the A represent?The amount of interest earned.The amount of time that has passed.The total amount of money after a certain amount of time.The amount required to invest. - 12. Multiple Choice
Find the initial value of an investment if the future value is $9519.87 after 5 years at a rate of 8.79% compounded continuously.
$9855.71
$6134.21
$14774.19
$6322.93
- 13. Multiple Choice
A student solves a problem about continuously compounded interest and determines that r = .3
They should conclude that the interest rate is .3%
They should conclude that the interest rate is 3%
They should conclude that the interest rate is 30%
They should conclude that the interest compounded for .3 years
- 14. Fill in the Blank
If a debt of $ 20,000 grows to $ 45,000 in only 4 years, what rate of continous compound interest was used? Round your answer to the nearest HUNDRETH and write answer as a percentage
- 15. Fill in the Blank
Suppose someone has a credit card that compounds continuously. How long will it take, at 24.95% interest, for $ 20,000 in debt to become $ 50,000? Round your answer the the nearest TENTH
- Answer choicesTagsAnswer choicesTags