

Compounded Continuously
Presentation
•
Mathematics
•
9th - 12th Grade
•
Hard
Joseph Anderson
FREE Resource
11 Slides • 12 Questions
1
Compound Interest
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COMMON TYPES OF COMPOUND PERIODS
Compounded annually: one time per year; n = 1
Compounded semiannually: two times per year; n = 2
Compounded quarterly: four times per year; n = 4
Compounded monthly: 12 times per year; n = 12
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Multiple Choice
Mark took a loan out for $25,690 to purchase a truck. At an interest rate of 5.2% compounded monthly, how much total will he have paid after 5 years?
$33,299.42
$33,672.68
$34,157.04
$34,710.88
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Multiple Choice
Emily’s parents put $1,500 in her bank account for college tuition. At an interest rate of 8.25% compounded semiannually, what will be the balance after 18 years?
$6,273.50
$6,314.08
$6,385.72
$6,427.94
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Fill in the Blanks
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Fill in the Blanks
Type answer...
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Fill in the Blanks
Type answer...
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Compounded Continuously
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Multiple Choice
Damara invests $3500 at 2% compounded continuously for 5 years. How much will she have in her account after 5 years?
$3868.10
$3886.10
$3688.10
$3286.10
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Multiple Choice
Hannah invested $4000. How much money will she have in 15 years if the interest rate of 6% is being compounded continuously?
9839.42
32412.71
9838.41
32412.72
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Putting It All Together
Read each problem carefully and answer the question. Be sure to use the correct formula!
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Multiple Choice
Mark invests $3,285 in a retirement account with a
fixed annual interest rate of 7% compounded continuously. What will the account balance be after 18 years?
$12,420.73
$13,321.33
$12,671.64
$11,581.01
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Multiple Choice
Olivia would like to buy some new furniture for her home. She decides to buy the furniture on credit with 9.5% interest compounded quarterly. If she spent $7,400, how much total will she have paid after 8 years.
$15,415.94
$15,683.28
$15,927.56
$16,109.05
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Multiple Choice
Chelsea put $7500 into an account paying 5% compounded continuously. How much will she have in 7 years?
$10,643.01
$12,294.91
$9,143.04
$11,659.53
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Multiple Choice
Riley invested $1,000 in savings bonds. If the bonds earn 6.75% interest compounded semi-annually, how much total will Riley earn in 15 years?
$1,584.62
$2,651.39
$2,706.86
$1,825.10
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Multiple Choice
If $1,000 is invested at 16% interest, compounded continuously, for five years, what is the ending balance?
$1,225,54
$2,225.54
$22,255.40
$225.54
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We hope this lesson was helpful in learning about compound interest and interest compound continuously!
Compound Interest
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