Compound Interest quiz

More questions about Compound Interest

These visible examples show the question style. LearnClash turns the full topic into ranked duels and spaced repetition.

1. 1 Easy

   Which interest adds as much to savings in year 50 as in year 1?

   Answer: Simple interest

   Why: On $100 at 10%, simple interest adds $10 in year 50, while compounding adds about $1,067 that year.

2. 2 Medium

   How much more does $1,000 reach at 8% than at 4% in 36 years?

   Answer: About 4 times as much

   Why: Doubling the rate nearly quadruples the result: $1,000 reaches about $15,970 at 8% but only about $4,100 at 4%.

3. 3 Hard

   Roughly how many times bigger does debt growing 1% daily get in a year?

   Answer: About 38 times

   Why: Adding 1% a day would add 365% in a year, but with daily compounding the debt grows by about 3,680%.

4. 4 Easy

   Which US investment turned $1 in 1900 into over $100,000 by 2024?

   Answer: Shares

   Why: Long-term US government bonds turned the same 1900 dollar into only $268 by 2024, and treasury bills into just $67.

5. 5 Medium

   Roughly how much does unpaid card debt grow yearly at 2% a month?

   Answer: 27%

   Why: Bigger monthly rates widen the gap: 1% a month compounds to 12.7% a year, but 5% a month to almost 80%.

6. 6 Hard

   Which payment in a fixed loan has the highest share of interest?

   Answer: The first payment

   Why: Because the principal is at its maximum at the start, the first payment incurs the greatest dollar amount of interest before balance reductions begin.