9-4: TEKS Practice

  • 1. Robert deposits $300.00 in a savings account that earns 5% interest compounded annually. Figure 1 shows the compound interest and the final balance for 3 years. Find the compound interest and account balance for year 4 to complete the table.

  • 2. Randall deposits $400 in an account that earns 5% interest compounded annually. Teresa deposits the same amount into an account that earns 5% simple interest. Which account will have a greater balance after 2 years?

    • A. Teresa's account balance is greater.

    • B. Randall's account balance is greater.

    • C. After 2 years, Randall's and Teresa's account balances are equal.

  • 3. Suppose that $9,000 is invested in an account at 6% interest. Find the account balance after 7 years if the interest is compounded annually.

  • 4. A company will need $50,000 in 6 years for a new addition. To meet this goal, the company deposits money in an account today that pays 5% interest compounded annually. Find the amount to the nearest hundred dollars that should be invested to total $50,000 in 6 years.

  • 5.

    • a. What is the value of a $5,000 investment after 6 years at 4% interest compounded quarterly?

    • b. How much interest does the investment earn?

  • 6. Reasoning Two bank accounts open on the same day with original deposits of $725. The first account earns 2% interest compounded annually. The second account earns 2% simple interest.

    • a. What is the balance of the first account after 1 year?

    • b. What is the balance of the second account after 1 year?

    • c. Which account will have a greater balance after 1 year?

      • A. The first account.

      • B. The second account.

      • C. They will have the same balance.

  • 7. Writing An investor considers two investment bonds. One $8,000 bond offers 9% interest compounded annually for 10 years. Another $8,000 bond offers 9% interest compounded quarterly for 10 years.

    • a. How much more interest would the investor earn from the bond with quarterly compounding? Round to the nearest dollar as needed.

    • b. Explain how to find the interest rate the bond with annual compounding would have to offer so the interest earned would be the same for both bonds.


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Table of Contents

Digits, Grade 7, Volume 1, Homework Helper Unit A: Number and Operations Unit B: Expressions, Equations, and Relationships Unit C: Measurement and Geometry Unit D: Proportionality English/Spanish Glossary Formulas Math Symbols Formulas Measures Properties