Finance Drills Questions (Based on interest)

Name: Date: Finance Drills: 1) If we invest $500 in a bank where it will earn 8 percent interest compounded annually, how much will it be worth at the end of 7 years? (Show your work) 2) Describe the three different ways you could derive that answer for question #1? 3) If you put $1,000 into an investment paying 20 percent interest compounded annually, how much will your account grow to in 10 years? 4) If you have bad credit, thus will pay a higher interest rate for your loan.. What is the best strategy to curve your total interest paid to the bank