1. Number and Algebra
Compound Interest — Quiz
Test your understanding of compound interest with 5 practice questions.
Practice Questions
Question 1
In compound interest, what does the principal refer to?
Question 2
Which formula gives the amount $A$ after $n$ years when a principal $P$ earns interest at rate $r$ compounded annually?
Question 3
A $1000$ investment earns $5\%$ compound interest per year, compounded annually. What is the value after $2$ years?
Question 4
If an annual interest rate of $12\%$ is compounded monthly, what is the monthly interest rate?
Question 5
Which statement best describes compound interest?