MathScore Practice: Continuous Compound Interest

Description: Calculate continuous compound interest given a balance, rate, and time.

Adaptive Learning Progression: Numbers get bigger.

Sample Levels (out of 3)

Answer the following questions involving continuously compounded interest. Input all answers to the nearest dollar. Use 2.7 as the value for e.

1.	Interest Rate: 2% per year Starting Balance: $1870 Time Passed: 14 years What is the new total balance? How much interest has accrued if calculated as continuously compounded interest? Total balance: Interest:
2.	Interest Rate: 3% per year Starting Balance: $1090 Time Passed: 13 years What is the new total balance? How much interest has accrued if calculated as continuously compounded interest? Total balance: Interest:
3.	Interest Rate: 6% per year Starting Balance: $1830 Time Passed: 10 years What is the new total balance? How much interest has accrued if calculated as continuously compounded interest? Total balance: Interest:

Answer the following questions involving continuously compounded interest. Input all answers to the nearest dollar. Use 2.7 as the value for e.

1.	Interest Rate: 6% per year Starting Balance: $7900 Time Passed: 48 months What is the new total balance? How much interest has accrued if calculated as continuously compounded interest? Total balance: Interest:
2.	Interest Rate: 3% per year Starting Balance: $5680 Time Passed: 96 months What is the new total balance? How much interest has accrued if calculated as continuously compounded interest? Total balance: Interest:
3.	Interest Rate: 1% per year Starting Balance: $3730 Time Passed: 156 months What is the new total balance? How much interest has accrued if calculated as continuously compounded interest? Total balance: Interest: