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# Lesson 2:

Core Connections B-32 7-8 3/24/18

DIRECTIONS
You will use the links below to watch the video on the different compound interest and after learning about
the different types of compound interest you will complete the answers below, there is 11 questions to
https://www.thecalculatorsite.com/articles/finance/compound-interest-formula.php

## \$250.21 \$83.93 \$86.73 \$95.70

2) 4)
1) 3)
An investment of \$35 An investment of \$64
An investment of \$11 An investment of \$49
earns 48.2% interest earns 4% interest
earns 8.3% simple earns 15.4% simple
compounded annually for compounded quarterly
interest for 3 years. How interest for 5 years. How
5 years. How much is it for 2 years. How much is
much is it worth? much is it worth?
worth? it worth?
5) 6) 7) 8)
An investment of \$12 An investment of \$70 An investment of \$51 An investment of \$52
earns 40% interest earns 10.7% interest earns 30.1% interest earns 48.1% interest
compounded monthly for compounded semi- compounded annually for compounded weekly for
4 years. How much is it annually for 3 years. 1 years. How much is it 1 years. How much is it
worth? How much is it worth? worth? worth

9) 10) 11)
An investment of \$70 An investment of \$68 An investment of \$53
earns 11.3% interest earns 17.4% interest earns 26.3% interest Which answer was not
compounded daily for 4 compounded monthly for compounded quarterly used?
years. How much is it 2 years. How much is it for 1 years. How much is
worth? worth? it worth?

What difference did you see from the different types of compound interest?

Which compound interest will give you the most profit over time? Why do you think that is?