7.6 - Growth Decay and compounding interest

Front

What is the y-intercept of the function?

Back

The y-intercept is the value of the function when x=0. For the function in question, the y-intercept is 3.

Front

If you want to have $12,000 after 18 years with an average yearly growth factor of 1.07, how much should you invest today?

Back

You should invest $3550.37 today.

Front

Back

The initial number of waves increases at a rate of 15% each day.

Front

What does the model P=A(1+r)^t best represent?

Back

The model represents Exponential growth.

Front

If Emilee has $800 to deposit in an investment account that will triple every year, how much will she have in 4 years?

Back

Emilee will have $64,800 in 4 years.

Front

Define compound interest.

Back

Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.

Front

What is the formula for calculating compound interest?

Back

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 interest that has been added to the principal.

Front

What is exponential decay?

Back

Exponential decay is a decrease that follows an exponential function, where the quantity decreases at a rate proportional to its current value.

Front

How do you calculate the future value of an investment using the compound interest formula?

Back