Section 1 - Instruction

You learned how compound interest works - earning interest on your interest. Now let's practice calculating real scenarios to see this powerful force in action.

Remember: time is compound interest's best friend, and every extra percentage point matters.

Engagement Message

Ready to crunch some numbers?

Section 2 - Practice

Type

Fill In The Blanks

Markdown With Blanks

Let's practice basic compound interest. Emma puts $1,500 in a savings account earning 4% annually.

Year 1: $1,500 + (4% of $1,500) = $1,500 + [[blank:$60]] = $1,560

Year 2: $1,560 + (4% of $1,560) = $1,560 + [[blank:$62]] = $1,622

Notice how the interest earned [[blank:increases]] each year!

Suggested Answers

  • $60
  • $62
  • increases
  • decreases
  • $50
  • $65
Section 3 - Practice

Type

Multiple Choice

Practice Question

Two friends start saving at different times. Amy saves $100 monthly from age 25-35 (10 years), then stops. Ben saves $100 monthly from age 35-65 (30 years). Both earn 7% annually. Who likely has more money at age 65?

A. Ben - he saved 3 times longer B. Amy - she started earlier despite saving less time C. They'll have about the same amount D. It depends on the exact interest rate

Suggested Answers

  • A
  • B - Correct
  • C
  • D
Section 4 - Practice

Type

Sort Into Boxes

Practice Question

Sort these factors by whether they help or hurt your compound interest growth.

Labels

  • First Box Label: Helps Growth
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