$34,100 is invested at 4% for 3 years
How much interest is gained after the 3 years?
I= P x r x t
What is $4092.00
100
24 compounding periods a month
What is semi-monthly?
100
.5% as a decimal
What is 0.005
100
Give an example of a type of debt that accumulates interest
OSAP, line of credit, personal loan, credit card, pay day loan, car financing,
100
You invest $1000 in an account that gains 3% interest that is compounded quarterly. What value would you use in the formula below for i?
A = P (1+i)^n
What is .0075
200
$4,000 at 3% for 4 years
What is the total balance at the end of 4 years?
I = P x r x t
What is $4,480
200
Biweekly
What is 26 compounds per year
200
6.8% as a decimal
What is 0.068
200
Give an example of when you would want a HIGH interest rate
When investing money
200
You take out a loan for $5000 that accumulates 5.5% interest that is compounded semi-annually. You have the loan for 5 years. What value would you use for n in the formula below
A = P (1+i)^n
What is 10
300
$14,000 at 6% for 9 years
What is the total balance at the end of 9 years?
I= P x r x t
What is $21,560
300
quarterly
What is 4 compounds per year
300
10% as a decimal
What is 0.10
300
Give an example of when you would want a LOW interest rate
When borrowing money
300
Explain why compound interest gains interest faster than simple interest
Because you gain interest on your interest (e.g. your principal increases)
400
$43,800 at 4.8% for 2 years
What is the total balance at the end of 2 years?
I = P x r x t
What is $48,004.80
400
In compound interest what exponent would you use if you invest your money for 5 years and it is compounded semi-annually
What is 10?
400
20% as a decimal
What is 0.20
400
68% of divorced couples said this was the top reason for their relationship troubles
MONEY
400
You invest = $4000
interest rate = 4%
time = 3 years
compounded = monthly
How much do you have after 3 years? A = P (1+i)^n
What is $4509.08
500
$7,400 at 10.5% for 3 months
What is the total balance at the end of 4 months?
What is $7,594.25
500
In compound interest what exponent would you use if you invest your money for 10 years and interest is compounded monthly?
What is 120
500
Explain how to determine the value of i in the compound interest formula below:
A = P (1+i)^n
Take the interest rate in decimal form and divide it by the number of compounding periods per year.
500
What is the average amount of consumer debt Canadians carry? (your answer must be within $5000 of the correct amount)
$22,154
500
Principle = $750
Interest rate = 6%
invested for = 2 years
Interest is compounded semi-monthly. How much do you have after 2 years?A = P (1+i)^n