Alg 2 Honors TEST 3

Front

What is the formula for compound interest?

Back

The formula for compound interest is A = P(1 + r/n)^(nt), where A is the amount of money accumulated after n years, including interest, P is the principal amount (the initial amount of money), r is the annual interest rate (decimal), n is the number of times that interest is compounded per year, and t is the number of years the money is invested or borrowed.

Front

What does it mean for a function to exhibit exponential growth?

Back

A function exhibits exponential growth if it can be expressed in the form f(x) = a(b)^x, where a > 0 and b > 1. The base b indicates the growth factor, and since b is greater than 1, the function increases rapidly as x increases.

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Back

Front

What does the y-intercept of a graph represent in a real-world context?

Back

The y-intercept represents the initial value of the dependent variable when the independent variable is zero. In many contexts, it indicates the starting amount before any changes occur.

Front

How do you calculate a 10% decrease of a number?

Back

To decrease a number by 10%, multiply it by 0.9.

Front

What is the significance of the principal amount in compound interest?

Back

The principal amount is the initial sum of money that is invested or borrowed before interest is applied. It is the base amount on which interest calculations are made.

Front

What is the difference between simple interest and compound interest?

Back

Simple interest is calculated only on the principal amount, while compound interest is calculated on the principal and also on the accumulated interest from previous periods.

Front

What does it mean for a number to be compounded quarterly?

Back

Compounding quarterly means that the interest is calculated and added to the principal four times a year.

Front

How do you identify the growth factor in an exponential function?

Back

The growth factor in an exponential function of the form f(x) = a(b)^x is the base b. If b > 1, the function represents exponential growth.

Front

What is the formula to find the future value of an investment with compound interest?

Back

The future value of an investment with compound interest can be calculated using the formula A = P(1 + r/n)^(nt), where A is the future value, P is the principal, r is the annual interest rate, n is the number of compounding periods per year, and t is the number of years.