CRM Unit 7 Quiz 2

Write an equation calculating the amount of money you would have after x years with a simple interest rate of 12% on an initial investment of $400.

• y=12x+400

• y=.12x+400

• y=48x+400

• y=400x+48

Write an equation calculating the amount of money you would have after x years with a compound interest rate of 8% on an initial investment of $500.

• y=500(1.08)^x

• y=500(1.8)^x

• y=8x+500

• y=40x+500

How long will it take to double your money with the simple interest investment below?

y=20x+300

• 10 years

• 15 years

• 20 years

• 300 years

How long will it take to double your money with the compound interest investment below?

y=500(1.08)^x

^{Hint: use guess and check}

• Between 8-9 years

• Between 9-10 years

• Between 10-11 years

• Between 11-12 years

What is the initial amount, a, shown below?
 $y=5\left(0.92\right)^x$  

• 5

• 0.92

• 0.08

• x

What is the rate of decay, r, of the equation shown below?

y=5(0.92)^x

• 5 = 500%

• 0.92 = 92%

• 0.08 = 8%

• x = x%

You drink a beverage with 150 mg of caffeine. Each hour, the amount of caffeine that remains in your system is 70%. Write an equation to model this situation.

• y=150(0.70)^x

• y=150(0.30)^x

• y=.70x+150

• y=150x+0.70

The graph of the money in your account when you are earning simple interest would be ________.

• linear

• quadratic

• exponential

The graph of the money in your account when you are earning compound interest would be ________.

• linear

• quadratic

• exponential

In the end, which type of savings account will benefit you most?

• Simple Interest Account

• Quadratic Interest Account

• Compound Interest Account