Compound and Continuous Interest
Explore the basics of compound and continuous interest with real-world problems for Grade 6 students.
Includes
Standards
Topics
Compound and Continuous Interest
Name:
Date:
Score:
Read each question carefully and answer to the best of your ability. Show your work where applicable.
Interest is the money paid for the use of money. When you save money in a bank, the bank pays you interest. When you borrow money, you pay interest.
1. Interest is the paid for the use of money.
2. When you deposit money in a bank, the bank pays you .
3. The original amount of money deposited or borrowed is called the .
4. If you deposit $100 into a savings account that earns 5% simple interest per year, how much interest would you earn after 1 year?
5. What is the main difference between simple interest and compound interest?
Simple interest is always higher.
Compound interest is calculated only on the principal amount.
Compound interest is calculated on the principal and accumulated interest.
There is no difference.
6. Continuous interest means interest is calculated and added constantly, without any specific compounding period.
True
False
7. You invest $200 in an account that earns 10% interest compounded annually. How much money will you have after 2 years?
(Hint: Calculate interest for year 1, then add it to the principal for year 2's calculation.)
Related Worksheets
Balancing Your Checkbook
A Grade 6 math worksheet to help students understand and practice balancing a checkbook, including deposits, withdrawals, and maintaining an accurate balance.
Grade 6 Cash Flow Worksheet
A worksheet for 6th graders to understand and calculate cash flow, including income, expenses, and net cash flow.
Understanding Net Pay
A worksheet for 6th graders to learn about net pay, gross pay, deductions, and calculating take-home earnings.
Saving Money Smartly
This worksheet helps 6th-grade students understand the importance of saving money, setting financial goals, and making smart spending choices.
Net Worth Worksheet
A Grade 6 math worksheet on understanding and calculating net worth, including assets and liabilities.
Tax and Tip Calculations Worksheet
Practice calculating sales tax and tips on various purchases, including word problems for real-world application.
Writing Checks Worksheet
Practice worksheet for 6th graders to learn how to properly write and endorse checks, understanding different parts and their functions.
Income Calculation Worksheet
A Grade 6 math worksheet focused on understanding and calculating various forms of income.