Simple and Compound Interest

1
Simple and Compound Interest
COURSE 3 LESSON 6-8
3 4
You deposit 950 into an account that earns 4
interest compounded annually. Find the balance
in the account after five years. In your last
calculation, round to the nearest cent.
At the end of 5 years, the balance in the account
is 1,198.10.
6-8
2
Simple and Compound Interest
COURSE 3 LESSON 6-8
You invest 225 for four years at an interest
rate of 6 compounded annually. What is your
final balance?
After 4 years, your balance will be 289.45.
6-8
3
Simple and Compound Interest
COURSE 3 LESSON 6-8
1. You deposit 80 into an account that earns 6
simple interest. Find the amount of interest
earned in 3 years. Then find the final balance
after 3 years. 2. You deposit 80 into an
account that earns 6 compounded annually. How
much will be in the account in 3 years?
14.40 94.40
95.28
6-8