Compound Inter est WS 2

1. On July 18, Sallie deposits $1,400 in an account which earns 3.5% interest compounded daily and on
September 4
th
Sallie withdraws $1,200 from the account because of an unexpected expense. Find the
account balance after the withdrawal.



2. Anne wants to buy a new couch in 3 years. The couch will cost $1,500 by then. How much should she
invest now at 6%, compounded quarterly, so that she will have enough money to buy the couch? How
much interest will she earn?



3. Barrys savings account has a balance of $3,430. After 12 years how much interest will he earn if the
account pays 8% compounded semiannually?


4. Jenny has a $3,000 balance on her credit card with an 18% interest rate. If she makes no payments on
her card and no late fees are charged, how long will it take for her debt to double?






5. What if Jennys APR was 22% and she makes no payments on her card and no late fees were charged?




6. The first credit card that you got charges 12.49 % interest to its customers and compounds that interest
monthly. Within one day of getting your first credit card, you max out the credit limit by spending
$1,200.00 . If you do not buy anything else on the card and you do not make any payments, how much
money would you owe the company after 6 months?
Assignment # ____

Name _________________________________________

Date __________________________ Period _____