Compound Interest -Interpreting & Analyzing Exponential Function

Multiple Choice

The value of a used vehicle a number of years after purchase is given by the equation

3000(1 - 0.06)² .

What does the 3000 represent in the exponential equation?

• The amount the vehicle is worth after 2 years

• The depreciation rate of the vehicle

• The annual cost of maintaining the vehicle

• The original price of the vehicle

• The annual maintenance cost of the vehicle

Multiple Choice

The value of a used vehicle a number of years after purchase is given by the equation

3000(1 - 0.06)² .

What does the 2 represent in the exponential equation?

• The amount the vehicle is worth after 2 years

• The depreciation rate of the vehicle

• The annual cost of maintaining the vehicle

• The original price of the vehicle

• The annual maintenance cost of the vehicle

Multiple Choice

The value of a used vehicle a number of years after purchase is given by the equation

3000(1 - 0.06)² .

Does this exponential equation represent an exponential growth or decay?

• exponential growth

• exponential decay

Multiple Choice

The value of a used vehicle a number of years after purchase is given by the equation

3000(1 - 0.06)² .

What is the rate of growth or decay?

• 0.06 (6% growth)

• -0.06 (6% decay)

• 1.06 (6% growth)

• -1.06 (6% decay)

Math Response

The value of a used vehicle a number of years after purchase is given by the equation

3000(1 - 0.06)² .

Evaluate the exponential equation.

Type answer here

Correct Answer: 2650.8

Deg^°

Rad

Multiple Choice

The value of a saving account earning interest after a number of years is given by the equation 1500(1 + 0.2)³ .

What does the 0.2 represent in the exponential equation?

• The total amount of interest earned after 3 years

• The initial value of the savings account

• The interest rate earned per year (20%)

• The total value of the account after 3 years

• The amount of interest earned in the first year

Multiple Choice

The value of a saving account earning interest after a number of years is given by the equation 1500(1 + 0.2)³ .

Does this exponential equation represent exponential growth or decay?

• exponential growth

• exponential decay

Math Response

The value of a saving account earning interest after a number of years is given by the equation 1500(1 + 0.2)³ .

Evaluate the exponential equation.

Type answer here

Correct Answer: 2592

Deg^°

Rad

Multiple Choice

Which Exponential Formula?

• ab^x + k

• ab^x/t + k

• a(1 + r)^x + k

• a(1 - r)^x + k

• P(1 + r/n)^nt + k

Match

Identify each variable?

• 860

• .088

• 2

• 9

• unknown

P

r

n

t

A(t)

• P

• r

• n

• t

• A(t)

Labelling

You were charged 8.8% compounded semi annually on your loan of $860 for a 3 year term. What total did you pay to borrow the money after 3 years? What is the equation to model the senario?

Drag labels to their correct position on the image

860

?

3

2

0.088

2

3

Multiple Choice

Which Exponential Formula?

• ab^x + k

• ab^x/t + k

• a(1 + r)^x + k

• a(1 - r)^x + k

• P(1 + r/n)^nt + k

Match

Identify each variable?

• 1500

• .04

• 4

• 3

• unknown

P

r

n

t

A(t)

• P

• r

• n

• t

• A(t)

Labelling

Gina deposit $1500 in an account that pays 4% interest compounded quarterly.  What will her balance be after three years? What is the equation to model the senario?

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3

3

?

0.04

4

4

1500

Multiple Choice

Which Exponential Formula?

• ab^x + k

• ab^x/t + k

• a(1 + r)^x + k

• a(1 - r)^x + k

• P(1 + r/n)^nt + k

Match

Identify each variable?

• 1172.60

• 2

• unknown

• 12

• .032

A(t)

t

P

n

r

• A(t)

• t

• P

• n

• r

Labelling

If, at the end of two years, a saving account has a balance of $1172. 60, and the interest rate is compounded monthly at 3.2% . What was the original amount deposited two years ago? What is the equation to model the senario?

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12

0.032

2

12

?

2

1172.60