Applications of Exponential Functions Review

Caiden earned $475 from mowing lawns last summer.He deposited this money in an account that pays an interest rate of 3.8% compounded annually. What will be his balance after 15 years?

• $827.52

• $831.10

• $839.45

• $846.80

Riley invested $1,000 in savings bonds. If the bonds earn 6.75% INTEREST compounded semi-annually,how much interest will Riley earn in 15 years?

• $1,584.62

• $1,651.39

• $1,706.86

• $1,893.45

Inflation reduced people's purchasing power because

• the same amount of money buys ore goods and services

• the same amount of money buys fewer goods and services

• the market basket has to be changed every year

• there is not enough money in the economy

A year ago, you started working for $15.00 per hour. This year your employer gave you a $1 per hour raise. However, the Bureau of Labor Statistics calculated that inflation year-over-year is 6.4%. Calculate the purchasing power of your new hourly wage in last year's dollars. (Round to the nearest cent, do NOT add commas or dollar signs)

In 1960, Cole decided he wanted to set $1,000 aside for a rainy day. He put it in a jar and buried it in his lawn. From 1960 to 2022, the Bureau of Labor Statistics estimates that the average annual inflation rate was 3.8%. Calculate the purchasing power of Cole's $1,000 today, expressed in 1963 dollars. (Round to the nearest cent, do NOT add commas or dollar signs)

If you put money in a savings account earning a rate of return of 1% and inflation is currently at a rate of 2%, your money will be worth ____.

• more in the future.

• less in the future.

• exactly the same.

Sari makes an investment with the goal of having $30,000 after 40 years. If the growth factor is 1.08, how much money will she need to invest to reach her goal?

(Round to the nearest cent, do NOT add commas or dollar signs)

You put $100 in a savings account that earns 1% interest every year.

Identify if it is a linear or exponential function and if it shows growth or decay and by how much.

• Exponential

  Growth

  1%/year

• Exponential

  Decay

  1%/year

• Linear

  Growth

  1%/year

• Linear

  Decay

  1%/year

Dave and Amy Simms buy a $400,000 with a $60,000 down payment. Their mortgage loan has an annual interest rate of 5 percent. The loan is for a period of 30 years and will be paid in equal monthly payments that include interest.

What is the Monthly Payment for the loan? (Round to the nearest cent, do NOT add commas or dollar signs)