How to use this activity:

1. Answer each of the questions to the left.  Click here to see a reminder of these equations from the lesson text.
2. Use the slider at the top to set the interest rate. 
3. Use the time slider on the x-axis of the graph to set the time.
4. To check your work, click on the  "Show Solution" button under each exercise.

Q1:

How much money will accrue in 4 years if $2,000 is invested in a simple interest account earning 5% per year?

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Q2:

How much money will accrue if $2,000 is invested in an account at an interest rate of 5% compounded annually for four years?

Q3:

If you invest $2,000, how long would it take to accrue $2,500 at 6% interest in

a) a simple interest account

b) a compound interest account?

Q4:

What would be the minimum interest rate and best account type needed to accrue $2,300 in exactly 2 years?