Simple Interest
Compound Interest
Continuous Interest
APY and Other
Random
100
P = $500 r = 4% t = 6 years I = ?
$120
100
A = ? P = $1,200 r = 1% n = 12 t = 3
$1,236.53
100
A = ? P = $3,000 r = 2% t = 10
$3,664.21
100
r = 2% n = 4
2.02%
100
Simple interest: P = $2,470 r = 1.2% t = 3 years I = ?
$88.92
200
How much interest will you make on an investment of $470 if you put it in an account at 1.2% interest for 5 years?
$28.20
200
What will your total balance be after 10 years if you deposit $500 in an account with an interest rate of 2.5%, compounded semi-annually?
$641.02
200
How much will you have if you invest just $100 into a continuously compounded account at a rate of 1% for 18 years?
$119.72
200
What is the APY of a loan that calculates interest at a rate of 4% compounded monthly?
4.074%
200
You can put $1,000 into one of two compound interest accounts: one that pays 0.2% compounded daily, or one that pays 0.2% compounded annually. How much more will you make in the first year if you put your money in the first one?
About a fifth of a penny more. ($1,200 exactly versus $1,200.002)
300
What will your total balance be after 10 years if you deposit $500 in an account with an interest rate of 2.5%?
$625 - remember, "I" is only the interest, not the total amount!
300
You take out a loan of $10,000 at an interest rate of 6.8%, compounded quarterly. If you pay it back over 5 years, how much will you pay back total?
$14,009.38
300
How much did you initially deposit 7 years ago if you now have $1,234 in a continuously compounded rate of 0.1%?
$1,225.39
300
A car company offers to sell you a car at a nominal interest rate of 2.8% compounded monthly. What is the actual rate of interest you'll end up paying back?
2.836%
300
There are two accounts with an interest rate of 2.3%: one is simple interest, and one is continuous interest. How much more will you make in the latter if you leave $500 in for five years?
$560.94 - $557.50 = $3.44 more
400
What interest rate will make you $100 in interest on a deposit of $1,000 in 8 years?
1.25%
400
You now have $2,500 in your account that gets 0.02% compounded daily. How much did you put in when you deposited it three years ago?
$2,354.42
400
You have your money in a continuously compounded account with an interest rate of 1%. How long will it take $1,000 to turn into $1,010?
About 1 year.
400
What simple interest rate will give you the same amount of interest as an account that offers 2% interest compounded daily?
2.02%
400
You know you put exactly $1,000 into an account four years ago, and you know you now have exactly $1,034, and you know the rate was 0.85%. Was it a simple interest account or an account compounded quarterly?
Simple interest: 34 = 1,000*.0085*4, total of $1,034 (Compounded quarterly would give us A = (1,000)(1 + .0085/4)^(4*4) = $1,034.55)
500
How long will it take your loan of $1,000 to turn into $2,000 at a rate of 5%?
20 years
500
You deposited $10,000 in lottery winnings into an account with an interest rate of 0.25%, compounded quarterly, and now you have $11,000. How long did it take?
About 38 years
500
Your banks computers go crazy, and on accident, your $800 turned into $1,600 in one day (1/365 of a year). The account calculates interest continuously. What amazing rate was it giving?
25,300%
500
If you're taking out a loan at a rate of 6% compounded daily or 6.1% compounded semi-annually?
6% compounded daily = 6.18% 6.1% compounded semi-annually = 6.19% Better to take out the loan at 6% compounded daily.
500
How much longer will it take a loan to turn $5,000 into $5,500 in a simple interest account rather than a continuously compounded account if both have rates of 5%?
2 years in the simple interest account, 1.91 in the continuously compounded account, so .09 years more (about a month).
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