check mark
check mark
check mark
check mark
check mark
Question 1 of 5: Solve each word problem:
Beth invested $180,000 in a savings account that pays an annual interest rate of 0.9%. The savings account is set to compound quarterly (4 times per year). How much is in Beth's account after 2 years?
Next »
Select the Correct Answer Below: Correct! Cool Emoji Not Correct! Cool Emoji
A
$181,291.94
B
$180,114.13
C
$185,015.22
D
$183,265.63
E
$180,013.51
Question 2 of 5: Solve each word problem:
Aya invested $12,400 in a CD that pays an annual interest rate of 1.2%. The CD is set to compound daily (365 times per year). How much is in Aya’s account after 1 year and 6 months?
Next »
Select the Correct Answer Below: Correct! Cool Emoji Not Correct! Cool Emoji
A
$12,500.22
B
$12,425.12
C
$12,625.22
D
$12,190.81
E
$12,999.15
Question 3 of 5: Solve each word problem:
Helen invests in a fixed rate mutual fund with an annual interest rate of 4.7%. The mutual fund compounds monthly (12 times per year). If after 20 years, the account balance is $127,764.28 how much was the beginning investment?
Next »
Select the Correct Answer Below: Correct! Cool Emoji Not Correct! Cool Emoji
A
$75,000
B
$50,000
C
$88,200
D
$62,400
E
38,214
Question 4 of 5: Solve each word problem:
Nikki wants to buy a car in 3 years. Her parents tell her she must save the 10% needed to obtain financing. Her plan is to place a lump sum in a savings account that pays 10% annual interest and compounds daily (365 times per year). How much does she need to invest if the car she wants to buy costs $20,000?
Next »
Select the Correct Answer Below: Correct! Cool Emoji Not Correct! Cool Emoji
A
$1,599.21
B
$1,302.33
C
$1,481.70
D
$14,816.97
E
$9,284.31
Question 5 of 5: Solve each word problem:
Jacob is shopping online for CD offers. Midtown bank is offering an immediate $300 bonus for any 5 year CD with a deposit of $2,000 or more. The Midtown bank CD compounds monthly (12 times per year) and has an annual interest rate of 3.9%. Downtown Bank is not offering any bonus but has a significantly higher rate. Their 5 year CD also compounds monthly (12 times per year) and has an interest rate of 7%. Jacob decides to go for the bonus money. He invests exactly $2,000 with the Midtown bank. Did he make the correct choice in terms of earning the maximum return on investment?
Finish »
Select the Correct Answer Below: Correct! Cool Emoji Not Correct! Cool Emoji
A
Yes, the best choice is Midtown bank's CD
B
No, the best choice is Downtown bank's CD

Great Job! You Passed!

Better Luck Next Time...

Trophy
Restart Quiz ↻
Review Lesson ↻
Next Lesson »