Exponential Review for Unit 5

• Growth or Decay factor

  (Usually %)

• a

• Independent Variable

  (Usually units of time)

• f(x)

• Starting Value

• x

• Dependent Variable

• b

If a bank offers 5% compounded annual interest on their Certificate of Deposit savings accounts, how much will a $10,000 CD be worth after 5 years?

You recently won a $110,295 fully loaded truck (0-60 in 3.3 sec, 1000 hp, etc) in a contest. If your new truck loses 15% of its value every 3 days during the first month, what is the value of the car on day 30?

You get to choose between these four options to grow your money.

Which will result in the most money after 20 years?

• $200 put into a saving account with $10 added every 6 months

• $100 invested in a stock that averages 2.5% growth every 2 months

• $75 invested in a fund that averages 5% interest every 4 months

• $50 invested in a fund that averages 10% interest every 6 months

Mathematical Equivalence

ON

• a=500

• Faster

  rate

• 3/2

• Start Value

• 2/3

• Decay

  %

• b=1.50

• Slower

  rate

• b=0.67

• Growth

  %

Mathematical Equivalence

ON