Chapter 1 – Money

Worksheet 2 (Compound Interest)

Name: _____________________ Date: ____________

Formula for Compound Interest:

1) Find the compound interest on each of the following:

a) $400 for 4 years at 5% p.a. 1

b) $320.50 for 2 years at 3 % p.a.
2

1 1
c) $500 for 3 years at 2 % p.a. d) $675 for 4 years at 3 % p.a.
2 3
2) Mr Teo invests $60000 in POWER bank which pays a compound interest of 4%
p.a. After 5 years, he withdraws all his money. How much does he receive
altogether?

4 a) A finance company charges 15% simple interest per year. Mary takes out a
loan from this bank for 2 years. She paid a total of $90 interest. Calculate
how much she borrowed. [2]

b) A bank pays 6% compound interest per year. Carol invests $500. How
much money will Carol have in her account at the end of 2 years? [2]
(2002 P1 Q15)