E.1

Compound Interest

Find the balance and the interest earned when interest is compounded once a year.

Level

Medium

Level

Problems

Show exampleInclude answer key

@page { size: letter; margin: 0; } @media print { .ws-page + .ws-page { break-before: page; } } Daniel Math Academy \cdot Grade 8 Math Compound Interest Skill E.1 \cdot Percents & consumer math \cdot ★★☆ Medium Name Date Score / 4 Scan for answers Interest is compounded once a year. Round to the nearest cent. Example 1, 000 \times 1.0 5^{2} = 1, 102.50 Think: Each year the balance is multiplied by 1.05 (the whole balance plus 5% of it), so after 2 years it is multiplied by 1.0 5^{2} . 1 Ana deposits $ 2, 300.00 in an account that earns 2% interest compounded annually. How much interest does the account earn in 3 years? 2 Priya deposits $ 3, 900.00 in an account that earns 3% interest compounded annually. How much interest does the account earn in 2 years? 3 Omar deposits $ 3, 000.00 in an account that earns 5% interest compounded annually. What is the balance after 4 years? 4 Jin deposits $ 2, 000.00 in an account that earns 5% interest compounded annually. What is the balance after 2 years? Daniel Math Academy \cdot danielmath.com Worksheet # 3b5d9p3 \cdot Page 1 / 2 Daniel Math Academy \cdot Grade 8 Math Answer Key E.1 Compound Interest \cdot ★★☆ Medium 1 $ 140.78 2 $ 237.51 3 $ 3, 646.52 4 $ 2, 205.00 Daniel Math Academy \cdot danielmath.com Worksheet # 3b5d9p3 \cdot Answer Key \cdot Page 2 / 2

E. Percents & consumer math4 skills